Meeting state mandates can be time consuming, frustrating, but most of all – costly. The gas station business has changed a lot over the last decade. Margins have steadily been squeezed by higher taxes and rising credit card fees to a point where most stations are only earning $.01 - $.03 per gallon of fuel sold.
Instead of tapping your company’s savings / retained earnings or running up a short term bank line of credit, explore an equipment lease. It makes sense to have a manageable monthly payment that can be depreciated over the useful life of the equipment. In addition, the benefits of leasing are tax deductions, write-offs, and improved cash flow. Cash is king and liquidity is crucial in good economic times but this is especially true in a soft economy. Preserve your bank lines for an emergency or short notice revenue generating opportunities.
Steve Lee is an Equipment Finance Specialist at a leading financing company, First Star Capital (http://www.firststarcapital.com/ ). Steve is a frequent contributor to online publications and newsletters, and is the author of this blog on commercial financing topics.
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