Who leases their equipment?

[DDCSD]

Originally Posted by ChrisMc73

Good advice. The $500 computer won't be able to allow me to do video editing with Final Cut Pro though, some things I want to do with my camera and the video stuff...

So you're editing television programs and feature films for major studios?

[ChrisMc73]

Originally Posted by DDCSD

So you're editing television programs and feature films for major studios?

No. But tell me a $500 computer that will handle 1080p video and Final Cut Pro, with video from the 5D Mark II, for paying clients? Better yet tell me a Mac computer that is $500...

[DDCSD]

Originally Posted by ChrisMc73

No. But tell me a $500 computer that will handle 1080p video from the 5D Mark II for clients? Better yet tell me a Mac computer that is $500...

What I'm getting at is are you so busy doing work for clients and on such tight deadlines that you need two Macs, Final Cut Pro, three 30" monitors, etc...

How are you currently getting all of this work done on your 5 year old PC?

Do you actually have a client base or are you just anticipating one?

You use the word want a lot in your posts. You may find your wants getting you into serious financial trouble. Just trying to slow you down a bit and see the consequences of living fast and trying to keep up with the Jones'. Just remember, the Jones' are probably in foreclosure proceedings right now.

[ChrisMc73]

No, the two Macs scenario is for the future, where I want to be when working with a full time client basis, for now I want to do the work on just one of the two macs and one 30" screen.
Or maybe the MacBook Pro and 24" screen, but I do need a Mac and FCP to do the work I plan on offering in video.
I get what you are saying and agree. I do.

I'm not getting any video done on my 5 year old PC at all...and have lost out on some opportunities.
Right now I don't offer any video services because of this, nor does the guy I work with sometimes, but we want to be able to, and so our hope is we can add this service to our list...once I have the means and equipment to handle it.

The client base is small but could be bigger with this service. Its all hope for the future.
I live and work in IT aside from doing the photo/video stuff on the side, so I know I say I want this and that, its because I do want a Mac that is some what future built...I have looked into used older ones, and they might work as well, but for a little bit more I can have a nicer, up to date model.

I didn't think there was any harm in asking about ways of getting a small loan, in the $10-20K range for some highly specialized equipment and software, to add to the current photography business of two (maybe three soon) guys, who want to offer video as a service...

[Tom Reichner]

Originally Posted by ChrisMc73

Like what kind? Since it would be in my home, wouldn't my home owners insurance cover any loss?

A floater policy. Any insurance company that offers home insurance will most likely offer a floater policy. That's what I have on my equipment, and it's covered no matter what. I drop my body & lens in a lake and can't recover it? 100% covered. If I leave it on a picnic table in a park and finally remember an hour later and go back to get it, only to find it gone? Totally covered. Drop it on hard concrete and it needs a $2000 repair? Covered. You get the picture. Just call your insurance company and ask about it. Hard to beat for peace of mind.

[ChrisMc73]

Originally Posted by Tom Reichner

A floater policy. Any insurance company that offers home insurance will most likely offer a floater policy. That's what I have on my equipment, and it's covered no matter what. I drop my body & lens in a lake and can't recover it? 100% covered. If I leave it on a picnic table in a park and finally remember an hour later and go back to get it, only to find it gone? Totally covered. Drop it on hard concrete and it needs a $2000 repair? Covered. You get the picture. Just call your insurance company and ask about it. Hard to beat for peace of mind.

Awesome, I will for sure ask. Thanks for this info, is it expensive?

[DDCSD]

Originally Posted by Tom Reichner

A floater policy. Any insurance company that offers home insurance will most likely offer a floater policy. That's what I have on my equipment, and it's covered no matter what. I drop my body & lens in a lake and can't recover it? 100% covered. If I leave it on a picnic table in a park and finally remember an hour later and go back to get it, only to find it gone? Totally covered. Drop it on hard concrete and it needs a $2000 repair? Covered. You get the picture. Just call your insurance company and ask about it. Hard to beat for peace of mind.

Be very careful with floater policies (personal articles policies). Many of them will not cover equipment used for business purposes.

The agent may tell you they cover you "no matter what", but when you go to file a clain end tell them "I was photographing a wedding for a client and someone stole my camera bag..." they might just show you in the fine print where it says that you are covered only for personal equipment and not for equipment used in for commercial purposes.

If you're just shooting for fun and as a hobby, they're great and pretty cheap, but as soon as you accept payment for services provided with that gear you are likely voiding your policy.

business specific insurance really isn't all that expensive. An "inland marine" policy will usually cover you in any situation (but be sure to read that dine print).

[sfaust]

Originally Posted by Moppie

Leasing is great for items that will have a high capital cost, limited life span to the business and that will require more capital to replace.

Things like cars, plant, equiptment, IT infrastructure etc.

By leasing it, you can off set the cost over a much long time, and most importantly, use the capital else where in the business where it maybe better able to produce revenue.

Bingo.

I own my bodies, glass, strobes. I lease the IT equipment and van, and replace them every two years. I rent lenses and equipment I only use a few times a year.

There are many sound business reasons to lease rather than own. For example, I see far too many photographers putting all their capital in equipment, then scrimp for advertising and working capital. It would be far better for them to lease some of the equipment, which frees up working capital for promoting and operating the business to get it off the ground. There are many other scenarios as well for start up and established businesses.

The best bet would be to draft a business plan, then see an accountant for feedback on the advantages/disadvantages of leasing.