Equipment Purchasing and Leasing
What type of equipment does your business require to operate successfully day after day? If you are in the process of starting a business you should answer this question. If you are already in business, you probably know the answer. It doesn't matter if your business requires new farm equipment or restaurant equipment. We have the programs to help you grow, and continue to use up to date equipment.
Of course, knowing what type of equipment you need and actually getting your hands on it is two entirely different things.
If you need equipment, you have two options:
There are pros and cons to both ways of doing things. Most importantly, you must become familiar with the benefits and drawbacks of both while applying this information to your current business structure. While purchasing equipment may be best for you right now, leasing could be the answer in the future.
The primary benefit of purchasing business equipment is that you own it. No matter if you pay upfront in full or finance the equipment, when everything is said and done it is yours and yours alone. There are no ongoing monthly payments.
On the downside, it takes a lot of money upfront to purchase equipment. This is particularly true in many industries in which a single piece of essential equipment could cost in excess of $50,000.
With a lease, you never actually own the equipment. Instead, you are paying for the use of it based on predetermined terms and conditions. You can negotiate with the leasing company to ensure that you get the best price.
Additionally, you are always making a payment when you lease equipment.
On the plus side, you don’t have to put out nearly as much money upfront. Instead, you can get everything you need at a relatively affordable price. For businesses that are tight on money, this is a big advantage.
Do not overlook the fact that leasing equipment allows you to get the “latest and the greatest” as it is made available. In other words, you will always be in position to trade in your old equipment when the lease comes to an end and upgrade to the next big thing.
The decision to purchase or lease business equipment is not always a simple one to make. As you compare the pros and cons, you should get a clear picture of what makes the most sense for your business now and in the future.