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Q: Financing/Leasing of office equipment ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Financing/Leasing of office equipment
Category: Business and Money > Finance
Asked by: brianr-ga
List Price: $25.00
Posted: 04 Jan 2006 15:18 PST
Expires: 03 Feb 2006 15:18 PST
Question ID: 429174
What is volume/percentage of office equipment financed or leased by
small businesses in the United States?  For example, how many copiers
are leased vs purchased outright? How much office furniture is leased
vs purchased?

A small business is defined as one under 50 employees
Answer  
Subject: Re: Financing/Leasing of office equipment
Answered By: bobbie7-ga on 04 Jan 2006 19:21 PST
Rated:4 out of 5 stars
 
Hello Brianr,   


According to a new Equipment Leasing Association study, the copier and
furniture leasing marketplace is rebounding.

Excerpts:

?The office copier and furniture equipment industries represent two of
the top four equipment categories for capital investment by small
businesses, according to the report. The office copier market, in
particular, has rebounded to near 2000 growth levels. In 2000,
business investment in copier equipment was 9.6 billion, but dropped
to a low of $4.8 billion in 2001; in 2006, the office copier market is
expected to reach 8.3 billion ? a significant rebound for that
market."

According to Richard S. Carmichael, Managing Director of R.S.
Carmichael & Co., Inc.: ?Office copier equipment is a staple in
businesses, and is a mainstay for small ticket lessors?

He also said  ?It is a mature market. But technology, such as the
multi-function aspects of new copiers, is sustaining this market. So,
this market warranted an in-depth study.?

?The lease financing penetration rate for office copiers is estimated
to be upwards of 80 percent, with lease financing in this equipment
type expected to reach $6.5 billion in 2005, and $7 billion in 2006.?

Michael Fleming, the association?s president stated that  ?Overall,
the findings indicate that small businesses use leasing as a
significant financing mechanism for their office copier and furniture
needs,? and  ?Clearly leasing?s flexibility and convenience is paying
off for the office copier vendors and end-users alike.?

Equipment Leasing Association: August16, 2005 
http://www.elaonline.com/press/pressreleases_report.cfm?ID=5690


=================================================



From the Equipment Leasing Association:

Small businesses are twice as likely to lease their business equipment
as to purchase it.

Excerpt:

?A Small Business Administration survey found that small businesses
are twice as likely to lease their business equipment as to purchase
it outright. Why? Leasing enables companies to control their monthly
costs through a set lease payment - a prime benefit to small
businesses trying to weather changes in interest rates, inflation and
business volume. Other considerations that lead small businesses to
lease equipment include interest rates, disproportionate growth in
technology requirements, cash flow and dollar value inflation rates.?

Equipment Leasing Association
http://www.elaonline.com/Leasing4USA/


=================================================


Small Businesses Like Leasing Equipment 

?Survey results released by The Equipment Leasing Association (ELA)
show 77 percent of small businesses agree ? leasing equipment is a
good business strategy. Increased cash flow, consistent expenses for
budget planning, and maintenance options are the top reasons why small
businesses would opt to finance new through leasing.?

(?)

?Computers and office equipment are the top equipment types leased ?
41 percent of small businesses indicated they lease computers, another
41 percent said they lease office equipment. Interestingly, 59 percent
of respondents said their need for technology equipment grew
disproportionately to other equipment needs. ?


Small Business News Briefs 
http://www.smallbusinesscomputing.com/news/print.php/3110021


=================================================


Survey of Small Businesses Reveals Equipment Leasing  is the Favored
Strategic Financing Solution

Does your company lease or purchase its equipment outright?
67%   Lease
33%   Buy


What type of equipment does your company lease?
13%    Printing and imaging
13%    Telephone systems
18%    Postage machines
22%    Fleet Vehicles
36%    Computers
72%    Photocopiers

http://www.leasingservices.biz/leasing/decision.cfm#3


=================================================


?Leasing is one of the most popular methods of financing the purchase
of office furniture.

Eight out of every ten U.S. businesses lease some or all of their
office equipment.

Leasing is used by all sizes of companies, from Fortune 500's to small
entrepreneurial businesses.?

BFI Online
http://www.bfionline.com/services/financing.htm


=================================================

PowerPoint presentation
http://www.elaonline.com/events/2005/annconv/Samplehandout_2.ppt


=================================================

Search criteria:
Small businesses leasing buying office equipment/furniture + percent



I hope the information provided is helpful!

Best regards,
Bobbie7
brianr-ga rated this answer:4 out of 5 stars
this was the first time i used Google Answers and I'll definitely be
back.  The researcher found great info..makes me wish I wasn't so
specific in my question just to see what else they might have turned
up.

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