Benefits of Leasing Instead of Buying New Equipment

When your business needs new equipment, you have a few different options. You can lease it, get a loan or buy it outright. While there are certain situations in which owning your equipment may be?the better choice, there are several benefits to equipment leasing.

1. Lower Upfront Payment

Buying equipment outright can put a dent in your company’s savings and, even with a loan, you may need to make a downpayment. With leasing, this is not usually the case. Most often, you are only required to make your monthly payments which can reduce the financial burden on your business.

2. No Added Debt

A lease is a rental agreement and, because you are not taking out a loan, there is nothing to pay back. This means that there are no interest fees to worry about, and it won’t affect your credit-to-debt ratio. (Click Here To Learn More)