Q Does property holding (for all assets, not just buildings) tie up capital? Is renting or leasing a better solution?
LC Associates Ltd.
A Purchasing capital items does tie up money. Companies with excess cash will usually purchase items in lieu of leasing. If the company is short on cash or is already in debt, then leasing provides an “off-balance sheet” form of financing.
Elledge,facility/office services manager for Dallas, TX-based Summit AllianceCompanies, is the recipient of the Distinguished Author Award from theInternational Facility Management Association (IFMA), is an IFMA Fellow, and isa member of TFM’sEditorial Advisory Board. All questions have been submitted via the “Ask TheExpert” portion of the magazine’s Web site. To pose a question, visit this link.