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I just started my business in late 2004 and needed to get the equipment to get my newly hired employees to work. Knowing that cash flow is king, I decided it was a wise choice to lease everything I could, creating a better cash flow. Purchasing equipment as I have been told by people who have been there is not wise. I called Capital Linx off a referral and they easily set me up and got me approved for my laptops, computers, and desks. I later called back and picked up more equipment, and will be calling back again as I grow again.
Many Thanks to the Team of Capital Linx Pat Septon, President/ CEO Red Cow Technologies |
The most difficult thing in life is to know yourself. -- Thales
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Preserve Your Bank Lines …
Preserve Your Bank Lines …
… and lease all the equipment you require to run your business. Whether you own a trucking company or a consulting firm out of your home, leasing the equipment you need to earn a living or build a strong company makes good business sense. There are many different leasing companies in the market place today to fill just about every niche market, from computers to jet airplanes and all other assets in the middle. Usually the maximum time frame is 5 years, but there has known to be exceptions to this rule.
Leasing help preserve your valuable bank lines as in the business economy today the term Cash is King is becoming more and more a reality. We can learn from our most recent past with all the dotcom companies that rose to celebrity status overnight with millions of dollars at their disposal, so they went out and bought all their expensive equipment instead of leasing them. If these companies had used their money wisely then some of these companies would probably still be in business today because they would have had the cash available to them to withstand some of the storms that laid in wait for them. So whether you own a multi-million dollar business or small business out of your home, the value of your cash is very important. As we have seen with these dotcoms too many good businesses have gone out of business due to the lack of readily accessible cash and a good cash flow.
In addition to leasing you can also purchase your assets through a conditional sales contract over the same 5 year amortization. You should always check with your accountant to see if you would be better off to lease or purchase your equipment through a conditional sales contract. Depending on your unique income tax circumstances one method may be treated better than the other, either depreciation or straight deduction.
Many of our clients keep telling us the same things over and over again, I wish I knew now what I should have known when I started. Unfortunately there is no Official Rule Book when it comes to starting a business other than through seeking out as many business books as possible to see different points of view on the same subject and through referrals. Seek out as much advise as possible so you can structure you business greater than you know how. Now that you have read this article you now know what should in order to help make your business that much more successful.
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