Is Leasing a Viable Option?
Back in the last recession after the “dot com” bust, leasing enjoyed some popularity for a while. Until recently, it has been fairly dormant. In the last several weeks, however, I have been getting calls from leasing companies that want to push their services.
The concept behind leasing is familiar from automobiles, but works a little differently for law firms. A leasing company typically “leases” the entire cost of hardware, software AND CONSULTING SERVICES for a period ranging from 24 to 48 months. At the end of that time, you have a buyout that ranges from 1% to Fair Market Value (although what the “fair market value” is of 3 year old consulting services is something of a mystery to me). Depending on the terms, you may or may not get a tax writeoff (check with your accountant – generally a 1% buyout may not count).
In return for what amounts to a 10-20% premium compared with the cost of purchasing up front, you get a fixed low monthly payment over the period of the lease, and of course the premium is also spread over the length of the lease. This can provide firms with a way of continuing to move forward even during a recession.
Click here to see the original article by John Heckman on his Does It Compute? blog.
Please be sure to visit www.hardinglaw.com, the website for the law firm of Harding & Associates, for more information on California family law.
Thank you for visiting the Family Law Lawyer Tech & Practice blog. My name is John Harding. I am a family law lawyer practicing in Northern California. Long ago I realized that I could practice law more effectively and more efficiently (i.e., better and easier) by availing myself of the technological tools that are out there. I also learned that a successful law practice requires successful marketing. Hardware and software working together make me a better lawyer, and make my life easier. Marketing helps to bring in the business necessary for professional survival. By this blog I hope to share the tips, tricks, and technology that I have learned about so that others may benefit!