HOW TO GET AHEAD OF RATE INCREASES
To protect your budgets from these imminent rate hikes, consider the following:
- Rate Locks: Build predictability into your budget by securing your rate from the start. Your cost of funds on the day you sign your proposal will be the cost of funds when you close.
- Step Payments: Begin with minimal payments that increase over the life of your lease, with the flexibility to choose when you would like payment increases to occur.
- Cash Reimbursement: A cash reimbursement for purchases made within the last 12 months can help you preserve your cash position, manage bank covenants and pay down high-rate debt.
In the current economic environment, law firms seeking new, creative ways to acquire the equipment they need may find leasing a more cost-effective and beneficial option than purchasing outright. Despite increasing interest rates, financing investment in CapEx is on the rise, and leasing offers several advantages, such as cost certainty, accounting benefits and cash availability for other opportunities. Choosing to finance your firm’s upcoming projects through leasing can be a smart choice in navigating the challenging economic landscape ahead.