Page 20 - jul-aug 2023

useful. However, if you prefer to claim the • Equipment upgrades — Tank monitor-
amount of the lease payment as a tax deduc- ing is an efficient way to modernize propane
tion, a true lease, rental or TRAC lease would deliveries and is a technology that is always
be necessary. improving. A rental structure for tank monitors
• Useful life — What is the useful life of may be effective to allow for future equipment
your asset before it may require more than upgrades.
routine maintenance? True leases and TRAC In the propane industry, having the
leases are often used in the propane industry newest and most updated equipment and tech-
for companies that desire to replace their as- nology allows companies to deliver services on
sets on a predictable basis to eliminate main- time and grow their revenues. Having the best
tenance costs and wear and tear. Additionally, equipment is paramount to success and com-
employees love driving a brand-new bobtail or peting in the marketplace. Equipment financing
forklift. Alternatively, large steel tanks may have is an important tool to utilize when operating a
a useful life of more than 50 years. Utilizing a business.
capital lease or loan structure would be useful The next article in this series will ad-
because depreciating an asset like this would dress tips and strategies to help guide you
be beneficial. As an alternative to purchasing a through the financing approval process.■
new bobtail, some companies utilize older bar-
rels, which are refurbished and placed on new Paula Summers is senior vice president,
cabs and chassis due to their long life. sales and strategic partnerships, at Vision Financial
Group Inc. (VFG). She is a graduate of the Georgia
Institute of Technolo-
gy, an NPGA member,
SEPA member, Cer-
tified Lease Finance
DEALERS LP EQUIPMENT Professional, and
An Affiliate of R.E. Michel Company, LLC the 2023 chair of the
NPGA Women in Pro-
pane Council. Contact
Your SINGLE SOURCE for her at 843-200-9470
or paula@vfgusa.com.
*On Oct. 3, 2022, VFG
became a wholly owned
subsidiary of Civista
Bank, based in Sandusky,
Ohio. VFG was started
in 1991 and has been
proudly providing capital
...and ALL your propane equipment needs! equipment financing
ALL
solutions to the propane

Check us out online at dealerslp.com industry since 1999.
Source: Reprinted with
and follow us on permission from Paula
Summers. Originally
featured in BPN News,
1405 Sinnett Avenue • Dothan, Alabama 36303 January 11th. To read
800-433-8925 the article in BPN

News, click here.

20 Alabama Propane Gas Association | July / August 2023