What To Know When Leasing A Fabric Structure For Your Business
Why You Must Lease a Fabric Structure For 2019
This is the best year to lease a temporary fabric structure for all of your needs. When comparing a fabric structure tent as opposed to a more traditional structure, you will notice right off the bat that a fabric structure is going to offer substantial savings and a host of other benefits. Another benefit of leasing a temporary fabric structure is the fact that it is going to lower your amount of downtime while going about other business needs. We have found that the number of benefits in these structures continues to grow with each passing project. As we enter into another year, we thought it would be helpful to look at back at some scenarios where a building was leased.
Conversion of Capital
When you use cash conservatively in this case leasing as opposed to buying, you can use that capital for other business purposes.
Conservation of Credit and Budget
Leasing or renting a unit is not a loan When you have to borrow money for expenses it takes away from your lines of credit, leaving you free to use that for other expenses.
Balance Sheet Effect
When you actually purchase your own structure, the liabilities included with that purchase are going to increase. When a structure is purchased in full with cash, the current assets are decreased and the fixed assets increase, meaning there is less liquidity.
Impact on Statements
The lease for a fabric building is going to have a direct effect on the current ratio and balance sheet, therefore it is considered a business loan. In this matter, the lease payment will be treated as an expense loan. With that being said, it is always best to discuss these types of financial matters with your own tax and accounting experts.
Avoids Dilution of Ownership Equity
It is usually better to rent or lease a structure as opposed to the dilution of a company through equity financing in an effort to acquire [roper funds.
By leasing your structure, you will eliminate the need for accounting records and well as depreciation controls.
By choosing to rent it is going to offer an inexpensive means to acquire a new structure without the worry of long-term commitments.
Hedging Against Inflation
Financing allows for a much longer term for payment. You can use the money you make down the road for a purchase you make today and the lease will always remain the same.
One of the main benefits of leasing a structure is the fact that you will not be obligated to pay property taxes as opposed to owning a permanent structure.
Leasing tends to be one of the lowest cost options for a structure over the period of time. Payments are allowed to be fixed and will usually include all of your typical costs including maintenance.
There are several more benefits that are associated with leasing a temporary fabric structure for a wide variety of projects throughout the year. Take the time to contact one of our experienced project managers and let them help make your dream project a reality this year!
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