Leasing liberates cash to power growth. (Great Managers).(Ron Rapp discusses Milestone Contractors' equipment leasing strategy)(Interview)
Construction Equipment, December, 2002 by Stewart, Larry
Contractor refreshes fleet with more than 100 leases, reserving capital for higher-return operations and acquisitions Q. What's the advantage of leasing equipment when you're backed by a corporation that can borrow working capital at interest rates well into the single-digit range? A.
"On some of these machines the initial purchase price has gotten really high, and we don't want to use all our capital on equipment," says Ron Rapp, equipment manager with Milestone Contractors. "When the cost to buy equipment and the cost of the lease are very close, we often lease because we can use our capital to greater effect in other areas of the company." For example, the firm recently leased seven excavators. "The cost difference between leasing and...
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