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Unformatted text preview: y other businesses, both large and small, are joining Sebago Brewing in opting to lease
rather than purchase and finance equipment. In recent years, leasing has accounted for about 30
percent of all business investment in new equipment. Manufacturing companies are among the
largest users of equipment lease financing, although service firms such as Sebago Brewing
clearly find it attractive as well. Leasing is particularly attractive to small companies, because
their bankers may be tightening credit standards on more traditional financing alternatives.
According to an Equipment Leasing Association survey, the top reasons why small- and
medium-size businesses choose to lease rather than buy equipment are to preserve cash flow
(cited by 35 percent), to lock in financing costs (17 percent), convenience and flexibility of leasing
(13 percent), tax advantages (13 percent), inclusion of maintenance costs (13 percent), and ability
to afford state-of-the-art technology (9 percent). With a lease, the company’s payments are set at
the beginning of the lease term for the life of the lease, so the company is not affected by changes
in interest rates....
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This document was uploaded on 01/19/2014.
- Fall '13