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26 NOVEMBER 2014 COATINGSPROMAG.COM A s the economy continues to improve, more compa- nies are making capital investments to fuel growth, including coatings contractors. W hen business owners and managers consider acquiring equipment (e.g., spray machines, generators, dehumid- ifers, etc.), they often think of their payment option as a " lease versus buy" decision. In any economic environ- ment, but particularly in the current economic environment, when preserv- ing business owner or shareholder capital is an important goal, fnanc- ing equipment through a lease or loan could enable your business to preserve its cash and enjoy a number of other benefts as well. Acquiring equipment through leasing and tailored financing methods is more f lexible and customizable than most other funding options. Equipment finance is an $827 billion industr y in the United States, and it is easy to find industr y participants who customize their ser vice offerings by end user industr y, equipment ty pe, ticket size, or end user size. But which one — getting a lease or loan — is right for you? Tere are many diferent issues to consider before making the decision, such as whether or not the equipment is better, whether or not known monthly payments are more benefcial, and whether or not you can customize your fnancing situation. Read on for some detailed considerations. Choosing Your Financing Option W hether you fnance equipment through a lease or loan, each has its advantages and disadvantages. In evaluating your options, it is important to look at each alternative to determine which will best balance usage, cash fow, and your fnancial objectives. To help determine the most appro- priate option, consider the following 10 questions. 1. How long will the equipment be required? Generally speaking, if the length of time the equipment is expected to be used is short term (which usually means 36 months or less), leasing is likely the preferable option. Equipment expected to be used for longer than three years could be a candidate for either a lease or a loan. 2. What is the monthly budget for the equipment? As with any ongoing business expense, you should consider the monthly cost for a piece of In evaluating your options, it is important to look at each alternative to determine which will best balance usage, cash flow, and your financial objectives. Notes From The Field By William G. Sutton, CAE, President and CEO of Equipment Leasing and Finance Association To Lease or To Loan? Equipment Decisions