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Beauty And The Lease

You can get almost anything you want to start your business from a leasing company. But is it really the way to go?

This story appears in the November 2000 issue of Entrepreneurs Start-Ups magazine.

Finances preventing you from launching or expanding your business? Leasing may be the answer. Today's leasing companies supply virtually everything-from cars, trucks, office equipment and furniture to machinery, computers, communications devices and store fixtures. Qualifying for equipment leasing is generally easier than getting approved for a loan, and terms are usually more flexible.

But is leasing right for you? First consider the cost (the difference between buying and leasing), then evaluate the pros and cons of each method. Leasing lets you get and use equipment you can't afford to buy, reducing your upfront cash outlay. However, your ultimate cost over the life of the asset may greatly exceed the purchase price, had you opted to buy.

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