Lease vs. Buy Analysis – Best Practices

Corporate finance leaders should think about equipment finance and leasing as a strategic tool for the business. In addition to optimizing the use of capital, managing leasing programs proactively can help manage liabilities and improve financial stewardship.

For example, equipment finance transactions can free up other liquidity facilities, such as revolving credit agreements, for opportunistic acquisitions. Alternatively, proceeds from equipment finance transactions can be used to retire existing debt with high-interest rates and/or restrictive covenants, or to repurchase outstanding shares. An active program of equipment finance can also broaden and diversify a company’s funding sources, thereby improving market acceptance.

Download this eBook to discover best practices for treasury and finance, including:

  • Current market conditions
  • Tax ownership
  • Financial metrics
  • End-of-term options

 

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