How leasing reduces equipment payback period to zero
When we acquire a piece of packaging equipment, we
do so because it will help us make more money. The purchase of a stretch
wrapper, for example, will result in lower labor costs, decrease material
usage, and better secure our products during the shipping process. The purchase
of an automatic bagger will increase revenue by scaling up production. In both scenarios
– lower costs and higher revenues – we see a significant increase our company’s
cash flow. Let’s say we spend $45,000 on a flow wrapper, and that flow wrapper increases our cash flow by $15,000 a year. It will take three years for us to recoup the initial $45,000 investment. Those three years are the payback period. Until... Read More