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This is a list of each item of business equipment and its value. Generally equipment on this list is any major item used to provide a service or sell, store, deliver, or manufacture a product. The items should have a useful life of one year or longer. The lender may want a lien against this equipment as collateral or may want the business to insure this equipment and name the lender as the insured. When considering equipment needs, you and the consumer should consider whether or not to purchase or lease equipment. The advantage of leasing is low initial capital outlay. The disadvantage is that at the end of the lease the consumer does not own the equipment and may pay a large sum to purchase it.
Chapter 6 Business Plan Study Guide: Equipment List
© July 1998, 1st Revision June 1999, 2nd Revision February 2001
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