Has 3.2% GDP Restored Confidence?
The First Quarter GDP of 3.2% was good news but some economists are now predicting a slowdown for the remainder of 2019. Does this report cause business owners to be optimistic and have confidence in the economy? How will this affect your strategic planning?
The predictions of “experts” can also conflict with each other and provoke more doubt. “Uncertainties about global growth may limit businesses’ willingness to expand,” reported Kiplinger. “Now companies are back in expansion mode,” according to Forbes.
While many factors are considered before investing in one’s business, trust in the future demand of their product or service is the most critical. How can business owners mitigate some aspects of risk?
An article that appeared in The Monitor, a Leasing Industry Newsletter, addresses this issue. Tom Toton, of Corcentric, discusses how a Lease Finance program can “insulate the lessee from the vagaries of the used asset market” in his article titled “Another reason why leasing makes sense”.
While Mr. Toton’s expertise is in the trucking industry, the benefits of leasing that he describes in his article can apply to other capital assets, especially those subject to obsolescence. Our company cites some of the same advantages:
1. Convenience
2. Easy Budgeting
3. Preservation of Credit Lines
4. Tax Advantages
“A business can lease equipment more easily than traditional bank financing. Many companies also find it no longer makes sense to invest capital in assets that depreciate quickly in value.
A lease finance option gives the Lessee the ultimate in choices and flexibility. Management and Purchasing Professionals are poised to take advantage of whatever option allows them to stay efficient, compliant and competitive.”
If the higher than expected GDP has provided your business with the confidence to invest in new or upgraded capital equipment, a lease might be worth your consideration.
It’s the “lease” we can do,
Kevin F. Clune, CLFP
Clune & Company
