Featured image by Pavel Ilyukhin
If your business needs equipment, you may have the option to buy or lease. Leasing has many advantages, but it’s not the right move for every business or every purchase. How are you supposed to tell whether it’s better to buy or lease?
Buying vs. Leasing: The Basics
First, let’s explain some of the basics. Buying is the act of purchasing a piece of equipment outright; you pay the full price immediately, with cash or by borrowing money. From this point forward, you own this piece of equipment and can use it however you see fit.
In a lease, you don’t actually own the equipment, nor do you pay for it outright. Instead, you usually pay some upfront cost, then make monthly payments to fulfill the lease agreement. The owner of the equipment retains ownership, and in some cases is responsible for its upkeep. In return, you may use the equipment as outlined in the agreement.
Let’s say your business requires the … Read More