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Originally Posted by Kato
3 - Most of the online companies I have seen use a contribution method as one of the examples on how to best maximise the lease.
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Ok but you'll be hard pressed to see this contribution come from someone whom doesn't have a vested interest.
Look at the logic of it. Would you 'as an employee', pay for the privilege of a company car 'which you need for your job?', where you prime objective isn't to reduce the overall liability of the entity so you can either re-invest in capital/increase cashflow, or reap the benefits of the cash in the form of dividends, etc?
Quote:
Originally Posted by Kato
I have never had a lease, so I'm interested to see how they work. Every time I have investigated, they cost a lot more than buying with personal cash or having the business buy them.
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Makes perfect sense, but we have no clear indication where the funding is coming from.
Quote:
Originally Posted by Kato
Would be good to revisit this in a year and see what the actual costs have ended up being for future reference...
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Agree, but the lease amortisation schedule would give this information straight away.
Would be interesting to know who the lender is 'external/internal funding', as this would answer a lot of questions.