Much like an automobile, wastewater treatment plants can be leased rather than purchased, granting owner/operators more flexibility and peace of mind. But what exactly does this mean? What happens at the end of the lease?
Once you determine the need for a wastewater treatment facility, whether that be a whole new plant, component or temporary need, your first order of business is to review the budget to ascertain the most practical solution. While the option to purchase is common practice, consider the benefits of leasing your plant:
- Variety of options – Short term, long term, lease to purchase option or installment sale
- Low capital expenditure
- Reduce upfront costs
- Balanced cash outflow – Spread payments over the term of a lease rather than the burden of a one-time significant cash payment
- Retain capital – Fund other capital projects
- Avoid prematurely committing to an oversized facility
- Tax benefit – Recorded as an operating expense rather than debt
- Better planning – Lease payments remain constant for the duration of the term, or grow in-line with inflation
Once the lease term expires, you have the option to terminate the lease, extend the lease or purchase the plant at a reduced price, whichever solution suits your needs at the time of expiration.
Interested in a free project assessment? Contact us to learn more. We’ll discuss the scope of your project and recommend a financial plan from there.