Equipment Leasing has become a permanent fixture in business today, but how did it all start? When did equipment leasing become so important, and who is responsible for the practice? Leasing has a long and interesting history; we've put together the basics to give you an idea of where Tiger Leasing came from.
In 1984, clay tablets were found that provided evidence that equipment leasing has been around since 2010 B.C. In the ancient city of Ur, priests, who were governing the city, were leasing equipment and tools to farmers in the area. Leasing was not isolated to UR though, as proof of leasing has been found in ancient Babylonia, Egypt, Greece and Rome as well.
Here in America, equipment leasing has been around since the 1700's. Horses, buggies and wagons were leased to farmers, travelers and others. In the late 1800's, leased barges, locomotives and railroad cars helped build our country. Vendor leasing appears to have first appeared in America in the 1920's. In the 20's, companies were marketing their equipment by offering consumers the option to purchase equipment on an installment plan. These offers were presented to financing companies and banks at a discounted rate, allowing for vendor leasing to take root.
World War II was an important time for the leasing industry. Companies were looking for ways to attain assets and resources, without spending a ton of money on investments that wouldn't be as in demand once the war was over. At this point in leasing history, more sophisticated forms of leases began to develop. And the industry as a whole took off.
In 1954, the U.S. Leasing Corporation was the first company to take on the all-purpose equipment leasing that we have come to expect in today's business world. Though many things have changed since 1954, including tax laws, business models, accounting practices and more, the core of equipment leasing is still the same.
Much like the farmers and priests in 2010 B.C. Ur, equipment leasing is still offering companies an alternative to purchasing equipment. Leasing is still providing growing companies with the resources and technology they need to grow and thrive in our economy. There is no doubt the industry will continue changing, to better the lives of entrepreneurs and businesses, but at the core, equipment leasing will remain a reliable means for companies to grow.
Labels: Equipment Leasing