How Small Businesses Benefit from Equipment Leasing
When new equipment is needed, there are different options a business can use to get it. The most common options are to either purchase or lease the equipment, which gives the business access to the equipment whenever it’s needed. There are many factors that should be taken into consideration before deciding whether to lease or purchase equipment.
Equipment Purchasing vs. Equipment Leasing
When a business needs new equipment, one question that gets asked early in the process is whether the business should purchase or lease what’s needed. Purchasing ensures that the equipment is always available to the business for use, but can be an expensive investment, particularly if the equipment is going to be used infrequently. Conversely, leasing may be a more cost-effective solution, but can be limited by the terms of the lease.
The financial factors of leasing and purchasing equipment must be analyzed by the organization to determine which course of action is best. Along with the cost-effectiveness of each option, the business should consider how long the equipment will be needed, whether upgrades will need to be included, and other factors related to the use of the equipment. This analysis can guide the business and determine whether the new equipment should be purchased or leased.
Advantages of Equipment Leasing
While there are some instances in which purchasing equipment is a better option, many businesses find that leasing is more cost-effective and can better help the business meet its goals and objectives. There are notable advantages of equipment leasing that make leasing the best choice for a business in need of new equipment. Some of the advantages of leasing are:
- Support and technical assistant may be included in the lease terms.
- Upgrades and maintenance may be included in the lease terms.
- The business won’t be stuck with the equipment once it’s no longer needed.
- The business won’t have to keep paying for the equipment once it’s no longer needed.
Depending on the needs of the business and the terms of purchasing or leasing, a business may decide that equipment leasing is a better option than purchasing. By analyzing the business and equipment factors, a business can ensure it has the equipment it needs in the right financial context for the business to meet its goals and objectives.