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Majority
of Financial Executives Lease Equipment; National Survey Details
Importance of Strategic Financing Methods
A
study conducted by Financial Executive Magazine and the Equipment
Leasing Association (ELA) finds that 85 percent of senior financial
executives agree that leasing equipment is a good business strategy
for meeting the demands of a growing company. Results, as detailed
in the June 2002 edition of Financial Executive Magazine, show
that 85 percent of the respondents’ companies currently
lease equipment, with most respondents leasing computers, telecommunications
equipment, office equipment, material handling and industrial
equipment.
When
polled as to the challenges they face in financing equipment,
54 percent stated the greatest challenge is cash flow limitations.
Financial executives take advantage of leasing to meet this
demand. Results show that the executives will continue to utilize
leasing, with 78 percent of respondents stating they plan to
finance equipment in the next 12 months.
“An
overwhelming majority of financial executives are using leasing
to meet their business challenges,” noted ELA President
Michael Fleming. “Equipment leasing allows these financiers
to grow their business while defeating cash flow problems.”
Survey participants cited the following as benefits of leasing:
Ability to have latest equipment 59
percent
Asset management 44
percent
Consistent expenses 33
percent
Manage company growth 33
percent
Lower costs 33
percent
Transferring risk to lessor 33
percent
ELA
and Financial Executive Magazine conducted this survey to understand
the equipment acquisition strategies of financial executives.
The study specifically sought to identify how the executives’
companies currently finance equipment and their business attitudes
toward leasing as a strategic financing option. Respondents
included CFOs, vice presidents of finance, controllers, treasurers
and purchasing manager, with 93 percent respondents’ companies
operating for more than 15 years. The survey was conducted on-line.
CONTACT:
Kristina Boehk
Hill and Knowlton
Phone Number: 202-944-5181
E-mail: kboehk@hillandknowlton.com
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