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Your assumptions about leasing may not be accurate. by Richard McAuliffe When it comes to financing capital expenditures, you're probably well versed in the options. But are you shying away from leasing capital expenditures because it seems just like a term loan? Maybe you’ve heard that it’s just for manufacturing equipment or technology, or it sounds too complicated. |
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Written by Kent Harlan, CPA
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You suddenly find that your business is in a cash squeeze. You started your small trucking company with five units and a lot of industry experience. Things started out well, with revenues per mile on an upward trend, and an addition of two units the first year. But the expense pressure of higher fuel costs, driver settlements, permits, insurance, and repairs have begun taking its toll. Add to the mix some uncollectable accounts and your margins begin to suffer.
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