Many business owners today aren’t quite sure when it is better to lease equipment, or to buy it outright through cash purchasing. When answering the when to lease equipment vs buy dilemma, the reality of the situation is that leasing is almost always going to be a more financially advantageous acquisition method for a number of reasons that will now be discussed here.
One of the biggest and most important reasons why leasing is virtually always the more advantageous way to obtain all of the different equipment items that your business needs is that it helps to preserve the reserves of capital that keep businesses afloat during time of economic challenge.
When businesses decide to cash purchase their equipment items instead of leasing them, what they are doing, essentially, is rapidly expending the capital reserves which can act sort of like life support for a struggling business.
What leasing allows a business to do is pay for all of their necessary equipment items over extended periods of time, thereby making it easier to keep a business’s capital reserves healthy and intact for times when business is not so great.
When to Lease Equipment vs Buy Equipment
Equipment leasing is in no way limited to any specific business niche; on the contrary, virtually any business can benefit from leasing their equipment items, no matter the volume of equipment items required.
Some people might make the argument that buying your equipment items outright could be a better choice when a business only needs an expressly small volume of equipment products, but even in cases like these, leasing can still be the smarter business move.
In situations when only a small volume of equipment products are needed for a business, a one dollar buyout lease can provide the perfect solution. With this type of lease, a business can opt to permanently keep their equipment items when the lease term is up by making one final buyout payment, typically valued at one dollar.
Popular Equipment Leasing Niches
Although certain equipment leasing niches are more obscure than others, there are some niches where leasing is especially popular. If you’re a business owner or operator currently asking yourself when to lease equipment vs buy it, then you should know a few things.
For one, there is a fast increasing number of restaurant businesses, medical and dental practices, and fitness related businesses that are discovering the incredible financial benefits of leasing their equipment items instead of cash purchasing them.
Check out LeaseQ.com, and receive a free quote on leasing agreements that would be suitable for your specific business model.
Get an Instant Quote on Your Equipment Lease, Free
Check out this video to see when to lease equipment vs buy with LeaseQ, the advantages of leasing are compelling:
If for some reason, you can’t see this video click here.
Flexible Financing Options Associated With Leasing
When lessees are ready to determine how they plan to finance a leasing agreement, there is a certain degree of flexibility that will allow for different financing options.
One important determination to make is whether or not your business will be requiring loans in order to insure that all lease payments are made on time, as this will insure that no penalties or additional fees are incurred.
Even if you don’t need loans for your leasing agreement, your decision to lease is one that is likely to help your business prosper in the long-term.
Of course, to see if leasing is best for your business needs, click here for a free quote. You’ll quickly see what kind of leasing and financing program you qualify for. Feel free to contact us as well – to see how we can help.