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Equipment Leasing as a Current Financing Strategy for Middle Market Companies
Equipment leasing remains a viable tool for middle market companies in today's environment. The Equipment Leasing Association of America (the “ELA”) estimates that of the $668 billion spent by U.S. business on productive assets in 2003, $208 billion, or 31.1%, was acquired through leasing, and for 2004 the ELA projects that leasing activity will grow to $218 billion, or 30.7 cents of every dollar American businesses will invest in equipment.
The leasing industry has a history of employing product and market strategies that meet changing customer needs and economic realities. As a result of these actions, the industry has established a relatively consistent market-penetration range ' 28% to 32% of annual business investment in equipment ( See Table 1, below), from which the industry's recent and anticipated performance has not deviated. While it is true that lease pricing will increase with the expiration of bonus depreciation, and accounting regulations may impose new rules that impact the financial reporting of lease obligations, many of the historical motivations to lease will remain, and new economic and environmental factors will drive the offering. This article will review some of the primary reasons why leasing has served as a relevant financing strategy through multiple business cycles and in light of changing customer needs. Moreover, we will identify some specific reasons why leasing will continue to serve as a valuable financing strategy for U.S. business: both middle market companies and larger companies, alike.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.