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Some leases are operating leases. You may hear them called off-balance sheet financing
It means that you don't have to show any debt amount for it
So, if you have bank covenants that say that your debt has to be X% of equity, it does help
Also, it spreads a cash flow out.
Some people would say that it lessens risk, as we can turn back the equipment at the end of term (notice I said some people, I did not say me. This one can be argued either way)
Negatives
Interest rate component of the lease is sometimes not competitive
If the lease is considered a capital lease, it will have to appear on the balance sheet
Committment to pay
Usually no ability to sub-lease
What else can I help you with?
What are the advantages of renting commercial property over buying commercial property?
Renting commercial property versus buying it is going to be the most affordable route and thus the most profitable. If buying is an option, then of course it would be a good investment.
What is the cycle followed by the housing market?
The cycle is a way people use before buying a home or renting one.the cycle is something that people are use to using to help them out in buying or renting.
Which department ensures that no one will be discriminated against when renting or buying a dwelling?
The department that ensures that no one will be discriminated against when renting or buying is the Department of Housing and Urban Development. This department handles program that assists any individual in their housing plans.
What department ensures that no one will be discriminated against when renting or buying a dwelling?
United States Department of Housing and Urban Development
Why is renting an apartment usually cheaper than buying?
Renting an apartment is usually cheaper than buying because renters are not responsible for upfront costs like down payments, closing fees, and property taxes associated with purchasing a home. Additionally, renters typically avoid ongoing expenses such as maintenance, repairs, and homeowners' insurance, which can significantly add to the total cost of ownership. Moreover, renting offers flexibility without the long-term financial commitment of a mortgage, making it a more affordable option for many individuals.
What was the positives and negatives of the model t?
the positives and negatives are buying the supplies and tools to build the Model T
What are the pros and cons of buying a house or leasing a house for only 6 months what are the tax exemption rules for leasing?
Leasing is a form of renting. With leasing, you lock in the rental amount per month for the term of the lease. You get no tax benefits. The tax benefits are applied when you purchase a house.
Can you explain leasing a car and how it differs from buying a car?
Leasing a car is like renting it for a specific period, usually 2-4 years, with a set monthly payment. At the end of the lease, you return the car. Buying a car means you own it outright after paying for it, with the option to keep or sell it. Leasing typically has lower monthly payments but you don't own the car at the end.
What are the benefits of buying a cargo van?
The benefits of buying a cargo van are for deliveries of computers for one's office or office space. It is cheaper in the long term than renting. With ownership, one can sell the van to upgrade without consulting with the leasing company.
Where can one find more information about leasing versus buying a car?
You can find out about leasing versus buying a car on How Stuff Works. Other places with info about leasing versus buying cars is dmunds, and NN's site as well.
What are the positives and negatives of buying Girl Scout cookies?
The main "positive" is that the Girl Scouts are supported by cookie buying. The main "negative" is that the cookies really aren't very healthy to eat (due to significant quantities of sugar and saturated fat, and little in the way of healthy nutrients).
When taking into consideration the prices to lease a car is it better to buy?
The choice of either leasing or buying a car depends on the original price of the car; depending on the price, either leasing or buying can be the better option. However, buying a car is usually cheaper than leasing it.
Do renting and buying mean the same?
no
Which is much affordable, buying tool or renting tool?
Buying tools will allow you to use the tool at any time. Considering the rates for renting a tool, buying a tool will allow you to have flexibility in your purchase rather than renting everytime.
When one is buying options is it the same as leasing with option to buy?
When you are buying options it is considered the same as leasing with the option to buy. You can consult with your financial adviser for additional information on this process.
What is the difference between leasing and buying a car?
Leasing is basically renting. Payments are usually cheaper, but you don't actually own the car. Many times with leasing, you are also REQUIRED to have maintenance done regularly and only done at dealer-approved businesses. If any damage is done to the car, you will be required to pay for repairs. When you buy a car, you make payments until the car loan is paid off, and then you own the car outright.
How do you outline an essay on renting vs buying a house?
first is to create a simple slogan first about the comparison the follow it with this outline I-introduction (basically define the terms renting and buying house) II-Good points A. Advantage of Renting B. advantage of Buying III-Bad points A. Disadvantage of Renting B. disadvantage of Buying IV-Legal documents necessary for both
