The first consideration for most executives when deciding which type of financing makes more sense is evaluating the objective of the transaction. Is it owning the equipment or using it that will be the source of future profits to the business?

It is generally accepted that owning business assets is particularly beneficial when those assets appreciate in value (real estate being a prime example). Most assets like FF&E, computers, mini-bars, safes, door locks, etc. only depreciate in value, in most cases fairly rapidly. When the objective is getting maximum use out of a rapidly depreciation asset, it is that “use” that brings profits to the business, not the “appreciation” of the asset itself. Therefore make sure you maximize the use and minimize the investment .   (To continue reading click here)