I need help getting started on my paper. I need to describe the factors that need to be considered if a company was looking to purchase new equipment and they were going to lease the equipment versus buying the equipment.
BUYING VS LEASING OF EQUIPMENT: FACTORS TO BE CONSIDERED
Lease is a way by which a firm obtains equipment in return to contractual and periodic payments that may be tax deductible. Lease does not provide transfer of ownership from the lessor to the lessee.
Purchasing is obtaining ownership of equipment in return to an amount as agreed between the buyer and the seller.
In coming up with decisions as to whether needed equipment must be bought or purchased, the following factors may be considered and would help in coming up with the decision:
1. Available fund or capital. If the business owner or the firm has limited capital, a better option would be to lease the equipment. Leasing does not require a business owner to have large initial outflow in order to obtain equipment. For an established business with adequate and ready capital for the ...
Leasing equipment versus buying equipment are examined.