Unformatted text preview: the tenant to pay the landlord a specified amount of money each month; this payment is called rent. Why would you choose to lease instead of buy a capital item? Leasing prevents paying out so much capital upfront. This can help a company’s cash flow management, particularly a start-up or rapidly growing company. Therefore, instead, the cost of having the capital item becomes an operating expense. What steps would you follow to decide whether to lease or buy a computer system? If you really want to know whether to lease or buy for business or personal needs, then do the usual research. There are always plenty of website's that can provide all the facts, crunch all the various numbers, and make it worth your while to investigate. Avoid the rent-to-own dealers, of course, as the offer of no money down and no credit check is insufficient to overcome the price you pay down the road. With rent-to-own, it is always bigger than you expect....
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- Spring '08
- rental property, capital item