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Chief Financial Officers have long favored leasing sales to cash sales because they eliminate accounts receivable collection. By increasing leasing sales as a percentage of total sales, a company will reduce the number of days it takes to collect its accounts receivable (i.e. "receivable turn"). Depending upon a company's specific return on sales ratio, a reduction in receivable turn by just 5 days can increase bottom-line pre-tax net profit by a staggering 25%. Use Provident Capital Group's Profitability Calculator to determine how leasing can positively impact your company's bottom line. |
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