Top Reasons To Lease Study

http://www.leasefoundation.org/ResearchPubs/index.htm#smallfirm

Equipment Leasing and Finance Foundation Study Identifies Traits of Small Businesses Who Lease Equipment Most

              Top Reasons To Lease Identified Earlier Correlate With Foundation Findings 

Arlington, Virginia A study released today by The Equipment Leasing and Finance Foundation identifies  the reasons small firms lease and the characteristics of the small firms who lease the most. According to the results, small companies who use leasing as a strategic financing option are those that are either partnerships or corporations, have more than  $250,000 in assets, have been in existence for less than 20 years, employ managers that have at least five years worth of experience, and are not among the firms with the very strongest credit ratings.

    “The study implies the motivations behind the lease versus buy decision of small, privately-held firms,” said Lisa Levine, executive director of The Equipment Leasing and Finance Foundation. “The information underscores what the Equipment

 Leasing Association (ELA) discovered earlier in the year through its study of the Small Business Administration's (SBA) State Small Business Contest winners. “                                                     

     “We see a strong correlation between the characteristics of the small firm who will mostly likely lease equipment versus  purchase, and the top three reasons to lease identified by the SBA study,”  continued Levine. “Clearly, small firms who are younger and growing would find that the advantages gained by leasing equipment help them compete.”

               The top three reasons to lease stated by the contest winners, cited in ELAs SBA study, are:

                                    ·        the ability to manage company growth,

                                  ·        take advantage of the latest technology, and

                                         ·        improve asset management.

                    The SBA survey also found that 73 percent of small businesses lease equipment.

 Organizations seeking more information about leasing, including the questions to ask before signing a lease and help in finding a leasing company, should visit www.LeaseAssistant.org

 The Foundation study is the first study of leasing and small firms undertaken by the Foundation, and one of the few available on  the subject. The study is based on data taken from the National Survey of Small Business Finances that is conducted by the

Board of Governors of the Federal Reserve System and the U.S. Small Business Administration.  The most recent available data, from 1998, was gathered from more than 4,600 small U.S. firms. 

http://www.leasingnews.org/PDFFiles/study_leasing.pdf

                             About The Equipment Leasing and Finance Foundation

   The Equipment Leasing and Finance Foundation is a 501c3 non-profit organization established in 1989 by the Equipment Leasing Association of America (http://www.elaonline.com).  The Foundation develops and promotes the body of knowledge to enhance recognition and understanding of equipment lease financing.  The Foundation’s strategic objectives are to maximize the role that equipment leasing plays in the world economy, and to be the prime developer and disseminator of a body of knowledge of the leasing industry.  Visit the Foundation online at http://www.leasefoundation.org.

                                                  About ELA

Organized in 1961, the Equipment Leasing Association (ELA) is a non-profit association representing companies involved in the dynamic equipment leasing and finance industry.  ELA's mission is to promote the leasing industry as a major source of funds for capital investment in the United States and abroad.  ELA maintains an informational portal for financial decision-makers at http://www.leaseassistant.org.  Headquartered in Arlington, Va., ELA has more than 800 member companies and a staff of 27 professionals.  Equipment leasing is estimated to be a $244 billion industry in 2002.  Visit ELA online at   http://www.elaonline.com.