PCOC - Spring 2014 - (Page 14)

EQUIPMENT FINANCING & LEASING: An Important Tool for Business Growth By Clay Stephens and Reed Upson We've all heard the saying, "A dollar today is worth more than a dollar tomorrow." This expression should be a mantra to pest control operators, and is critical to the business decisions made by them on a dayto-day basis because it deals with the time value of money - something that is often forgotten in the rush of daily decision making. For example, if you ask someone whether they would rather receive their paycheck today or next month, assuming the amount would be the same in each case, they almost universally would say "today." It seems obvious...but why is this the case? Well fi rstly, you can control the money today. After that you can put those funds to work earning more money through investments - stocks, bonds, real estate, or other assets that can appreciate in value over time. Secondly, inflation decreases the purchasing value of that money as time goes on - hence the time value of money concept: where it takes more money in the future to buy the same amount as you can buy today (remember when gas was $1.5/gallon?). www.pcoc.org / Spring 2014 14 This same time value of money concept can also be applied as an argument for financing or leasing equipment purchases in your business, rather than using working capital (cash) today. It is more advantageous to have the $25,000 of cash on hand for working capital needs, or unanticipated events (remember the financial downturn?), rather than use that cash to pay for long-term equipment purchases - trucks, spray rigs, tarps, etc. Furthermore, it's better to use tomorrow's cash, by leveraging equipment financing, and spreading out payments over time for long-term equipment needs (especially with rates at all-time lows!). For example, a $25,000 utility truck you purchase with cash today, to expand your routes or services for business growth, is not earning you any additional income today. Why not spread the cost of the truck over time to match the additional income that this particular truck is going to earn you (matching future revenues, from investment, with future expenses)? http://www.pcoc.org

Table of Contents for the Digital Edition of PCOC - Spring 2014

President’s Message
Martyn’s Corner
Beyond the Bugs: A Conversation with Michael F. Potter
Equipment Financing & Leasing: An Important Tool for Business Growth
Maximize Our Presence at PCOC’s 2014 Legislative Days
Federal Update
Small Employer Responsibilities Under Health Care Reform Act
Happy Days are Here Again
Corky’s Pest Control
Index to Advertisers
Advertiser.com

PCOC - Spring 2014

https://www.nxtbook.com/naylor/CPCQ/CPCQ0120
https://www.nxtbook.com/naylor/CPCQ/CPCQ0419
https://www.nxtbook.com/naylor/CPCQ/CPCQ0319
https://www.nxtbook.com/naylor/CPCQ/CPCQ0219
https://www.nxtbook.com/naylor/CPCQ/CPCQ0119
https://www.nxtbook.com/naylor/CPCQ/CPCQ0418
https://www.nxtbook.com/naylor/CPCQ/CPCQ0318
https://www.nxtbook.com/naylor/CPCQ/CPCQ0218
https://www.nxtbook.com/naylor/CPCQ/CPCQ0118
https://www.nxtbook.com/naylor/CPCQ/CPCQ0417
https://www.nxtbook.com/naylor/CPCQ/CPCQ0317
https://www.nxtbook.com/naylor/CPCQ/CPCQ0217
https://www.nxtbook.com/naylor/CPCQ/CPCQ0117
https://www.nxtbook.com/naylor/CPCQ/CPCQ0416
https://www.nxtbook.com/naylor/CPCQ/CPCQ0316
https://www.nxtbook.com/naylor/CPCQ/CPCQ0216
https://www.nxtbook.com/naylor/CPCQ/CPCQ0116
https://www.nxtbook.com/naylor/CPCQ/CPCQ0415
https://www.nxtbook.com/naylor/CPCQ/CPCQ0315
https://www.nxtbook.com/naylor/CPCQ/CPCQ0215
https://www.nxtbook.com/naylor/CPCQ/CPCQ0115
https://www.nxtbook.com/naylor/CPCQ/CPCQ0414
https://www.nxtbook.com/naylor/CPCQ/CPCQ0314
https://www.nxtbook.com/naylor/CPCQ/CPCQ0214
https://www.nxtbook.com/naylor/CPCQ/CPCQ0114
https://www.nxtbook.com/naylor/CPCQ/CPCQ0413
https://www.nxtbook.com/naylor/CPCQ/CPCQ0313
https://www.nxtbook.com/naylor/CPCQ/CPCQ0213
https://www.nxtbook.com/naylor/CPCQ/CPCQ0113
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0412
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0312
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0212
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0112
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0411
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0311
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0211
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0111
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0410
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0310
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0210
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0110
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0409
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0309
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0209
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0109
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0408
https://www.nxtbook.com/nxtbooks/naylor/CPCQ0308
https://www.nxtbookmedia.com