What’s better to buy or lease equipment for your business? 
When it comes to acquiring new plant or equipment for your business, the choice to either buy or lease equipment for your business can be a difficult one. Both options have their pros and cons. The best decision will depend on your specific circumstances as a business owner.
The pros for buying:
Buying equipment offers the benefit of ownership, allowing you unrestricted use of the item for its lifetime. You also have the ability to alter it to suit your business needs and even sell it if necessary. The cost is paid upfront, eliminating ongoing payments, and there may be potential for tax depreciation. However, this option may come with a higher upfront price.
The pros for leasing:
Leasing equipment, on the other hand, provides more flexibility, at a higher total cost. You don’t have to save or borrow the purchase price and instead make regular payments. You also have the option to return or upgrade the equipment as your business grows. This option may be ideal for equipment that becomes obsolete quickly or that you are unsure if it’s the right fit for your business.
What to do?
It’s a tough one to call and really depends on the circumstances you and your business are in. However, you don’t need to decide what to do on your own…
Our team can help you weigh the costs and benefits of both options by analyzing your cash flow, borrowing costs, and sales projections to make an informed decision. That way you are in the best position to make the right decision for you and your business going forward. If you’re interested in having a chat click here and we’ll get busy rolling up our sleeves to make you and your business better. Make sure to check out our blog to find out more useful nuggets of information your business could benefit from.