Lease vs. Buy: What’s Best for You?
The Advantages of Leasing
On the other hand, leasing frees capital, preserves cash flow, and spreads the cost of acquisition over several accounting periods. Leasing usually does not require a large cash outlay at the beginning of the agreement. In a business, leasing may keep credit lines open and avoid increasing net liabilities on the balance sheet. In an inflationary economy, leasing allows repayment in cheaper dollars. Including lease costs in a budgeted hourly rate calculation is straightforward and easy to defend.
Ray Chambers, CGCM, MBA, has invested over 30 years managing and directing printing plants, copy centers, mail centers and award-winning document management facilities in higher education and government.
Most recently, Chambers served as vice president and chief information officer at Juniata College. Chambers is currently a doctoral candidate studying Higher Education Administration at the Pennsylvania State University (PSU). His research interests include outsourcing in higher education and its impact on support services in higher education and managing support services. He also consults (Chambers Management Group) with leaders in both the public and private sectors to help them understand and improve in-plant printing and document services operations.
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