BUSINESS MANAGEMENT
www.landscapeirrigation.com Landscape and Irrigation November/December 2015 19
William G. Sutton, CAE, is president
and CEO of the Equipment Leasing and
Finance Association (ELFA), the trade
association that represents companies
in the $903-billion equipment finance
sector, which includes financial services
companies and manufacturers engaged
in financing capital goods. ELFA has
been equipping business for success
for more than 50 years. For more information, visit www.
ELFAOnline.org. Follow ELFA on Twitter @elfaonline.
© Equipment Leasing and Finance Association 2014.
Reprinted with permission.
with old technology, and can upgrade with new equipment that
can give your business a competitive edge.
3. Does your business have the resources to manage assets
throughout their lifecycle?
Equipment management is a function that requires resources
and expertise that are beyond the scope of most businesses. Selling
or disposing of the asset, maintenance, repair and other aspects
of asset management become the end-user's responsibility at the
end of a $1 buyout lease. With an FMV lease, you outsource the
asset management function to the equipment leasing company so
you can focus on your core business.
4. Do you anticipate the need for additional equipment?
If your business is planning for growth, you'll want your
equipment to be able to scale. An FMV lease will enable you to
get the right type and amount of equipment your business needs
in the future, and not be forced to mix and match newer with
older assets.
5. Will the equipment be used for a new venture?
When embarking on an untested business venture, there may
be uncertainty of when or if it will be successful. An FMV lease
will enable you to mitigate the risks of uncertainty and hedge
against ending up owning a piece of equipment you may not
need in the future.
Whether you choose an FMV lease or a $1 buyout lease, the
most important thing to keep in mind is that both will enable
your business to enjoy benefits you can't attain when purchasing
equipment with cash. For informational resources on equipment
leasing and financing, including a digital toolkit, videos and a
provider directory, visit www.equipmentfinanceadvantage.org.
LI
An FMV lease will enable you to
get the right type and amount of
equipment your business needs
in the future.
