All business owners who need expensive equipment of any kind are faced with the important question of whether they should lease or buy. It is estimated that up to 85 percent of small businesses prefer leasing equipment over buying it.
When you own equipment outright, you also own the full responsibility of maintaining that equipment and dealing with breakdowns. Oftentimes, leasing companies help bear the responsibility of equipment maintenance, and you are typically able to trade in your equipment for newer models after a certain period of time.
Equipment leasing gives you the chance to test different types of equipment to determine whether or not you really need it for the long haul. By testing equipment for shorter periods of time, you will have a better picture of which equipment models are best suited for your company’s needs, potentially saving you lots of money.
Leasing equipment is a great way to relieve some of the financial burden you would experience if you purchased the same equipment outright. In some cases, financing for equipment leasing is kept separate from your primary and revolving lines of credit at your bank, which frees up those forms of financing for other needs.
Small businesses looking to reduce equipment acquisition costs, minimize equipment maintenance concerns, and secure the best value for available funds may find that equipment leasing equipment leasing is the best solution for their needs.