Leasing Equipment?

Discussion in 'Business Operations' started by RON66106, Jan 18, 2002.

  1. RON66106

    RON66106 LawnSite Member
    from kcks
    Messages: 12

    How many of you have leased equipment to get your business going and did it work well?

    There is a thin line between tough and stupid!!!!!!!!
  2. Green Care

    Green Care LawnSite Senior Member
    Messages: 530

    Didn't lease any, I bought used equipment

    That worked for me!!!!!!!!!!
  3. I leased a piece of equipment in '89 to get into the big lawn market. It was $700/mo. for 60 mo.
    I got the lease thru Telmark. I bought the mower at the end of the lease.

    It was the only option for me at the time. I guess it worked out well because I'm still here.
    The interest rate was equivalent to 21%.

    Doesn't sound all that great when I write it down.

  4. AltaLawnCare

    AltaLawnCare LawnSite Senior Member
    Messages: 961

    Most leases are basically the same as loans - with a little higher interest. Take the payments you'll have to make and add them all togeather , thats what you'll wind up paying for the equipment. The differences in in tax write off. You can write off all the leases payments over the whole period (2,3 years). If financed, you can write off most of the cost over your current period (accelerated depreciation) but only the interest portion of payments during future periods.

    Some leases are set up to pay 6 months per year - called contractors leases - thus a 24 payment lease can be spread over 4 years. ;)

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