FINANCIAL OPTIONS - BUY, LEASE OR HIRE?Capital investment is a very important aspect of running a business. Spending large sums of money on things like property, office equipment or manufacturing technology is fraught with risk, and potentially disastrous if anything goes wrong.
We find that there are other options to outright purchase. You can lease equipment on a fixed term arrangement, or hire it for short terms as and when you need it.
We believe that if you follow some of the principles below, you might well help your cashflow:
- Buy when the expected life of the item is longer than 5 years and it is something your business relies on.
- Lease when it is something which you would replace in 5 years or less.
- Hire when it is something you use less than 75% of the time.
You could share your thoughts on 'financial options' with other business people.
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FINANCIAL OPTIONS
