Judy DiVincenzo about Equipment Leasing
The Benefits of LeasingDo you need to free up extra cash?
By Judy DiVincenzo
The hospitality industry has long embraced leasing be cause of its numerous benefits. Hotel owners should ask themselves if owning the equipment or using the equipment will be the source for future profits. "Owning" business assets can be particularly beneficial when those assets appreciate in value - real estate being the prime example. However, the majority of a hotelier's assets, FF&E for example, depreciates in value, and in most cases it depreciates fairly rapidly.
Businesses tend to write off 100 percent of their lease expenses and operating leases can effectively accelerate those write-offs even faster, putting cash into your pocket sooner. Also, what if you decide to change flags and the new franchisor requires upgrades or different equipment? Rather than having to lay out a substantial amount of cash for any needed upgrades or equipment, all you have to do is lease it.
Even franchise fees can be leased. What if you experience seasonal peaks and valleys in reservations? If you lease, then the profits of busier periods can be utilized to maintain the property during slower seasons.
Below are just a few other benefits of leasing:
· Turn over used or worn equipment whenever an upgrade is needed. This benefit is especially critical for technology equipment. It allows hoteliers to be up-to-date on the latest and greatest hardware and software for the hotel industry.
· Reduce the cost of maintenance on old and worn out equipment.
· Save on bank credit lines.· Conserve capital.
· Increase cash flow. Lease payments are evenly distributed, so there is no need to lay out a large initial capital expenditure.
· Leasing does not effect your personal credit rating or your ability to secure more financing for your business or your personal life.Lease rates are guaranteed fixed for the term of the lease.
For example, the lease rates offered at GCR Capital cover as much as 110 percent of the cost. We will include shipping, training, installation, initial maintenance and other "soft" costs as well.
Overall, leasing lowers a hotelier's Total Cost of Ownership and allows you to keep your hotel to date and in top shape.
Judy DiVincenzo is the president of GCR Capital. GCR Capital hasnearly a decade of experience inthe financial service industry andunderstands the needs of the hospitality industry.
For more information please call 877-735-1584 orvisit www.gcr-capital.com
