Buying or Leasing Equipment for Your Small Business – Which is Right for You?
Small businesses have two main options when it comes to obtaining equipment, leasing or purchasing. Even though either option gets you what you need, there are some benefits and disadvantages to both. So how do you know which option is right for your business?
Andre Olaofe, President of Select Funding says that in his years of experience in the financing industry he has seen the benefits in action for both leasing and buying equipment. And that when it comes to small businesses, owners typically opt for lease financing because they would rather keep more cash available to them for other expenses. “When a company has more important cash needs, lease financing allows them to acquire the equipment and still have the cash available for other uses,” he says. “When business owners don’t have the capital to make a large purchase, leasing provides a small monthly payment option with little money required upfront,” Olaofe adds.
The pros and cons of both leasing and purchasing equipment apply to any type of equipment. Here is an article we found on entrepreneur.com that explains how it applies to technology-based equipment.