What lease product is best for me?
Deciding on the best funding option or lease type for your business equipment requires careful consideration and an evaluation of a number of variables. The monthly payment or lease rate only tells one part of the story. What is of prime importance is to understand the whole life cost or the total cash flows for each type of lease over the total term.
Considerations to determine a true cash flow position
. What is the tax treatment for the lease?
. What is the GST treatment for the lease?
. Is there any secondary or resale value for the equipment?
. What are the break costs for the lease?
. What is the balance sheet treatment?
. How does inflation impact the cash flows
. What is the opportunity cost i.e lost interest or lost opportunity of using business working
capital rather than leasing?