Business Machines

Should You Buy or Lease?

Business Equipment is Essential

If you need business equipment, you may be wondering if buying or leasing is better. While both can have pros and cons, the answer really depends on your personal situation. Every business is different, so here are some issues you should consider..

Leasing vs Buying


Equipment leasing can be a very good choice for a business that needs to have constantly upgraded equipment or one that has limited capital. Leasing often requires little or no down payment making equipment easy to acquire. Other leasing advantages include tax deductible payments, more flexible terms than loans, and an easy way to upgrade without having to sell old equipment.


Buying equipment may be the better option if your business is established and needs equipment that has a long usable life. Buying equipment with financing will cost you more in interest but eventually you will own the item free and clear, saving you money. If you can buy the equipment outright, you can save on the interest charges but you will have to depreciate it on taxes over several years.

What's Best

Purchasing and equipment leasing both have advantages and disadvantages. Basically, if you need expensive business equipment but don’t have the initial funds to make a purchase, leasing is the better option. If the equipment you need has a long life, usually over 7 years, and you have cash for a down payment, buying may be the better option in the long run, plus you will own the equipment.

Making a Decision

Many business owners are faced with the decision to buy or lease the equipment they need to operate. Remember, you must make the decision based on your particular business needs and how much available cash you have on hand without causing financial difficulties. Analyze each option carefully before making your final decision..