Starting or growing a business is always going to be a capital-intensive exercise, especially when the business relies on specialised equipment. Whether it's industry-specific machinery, construction tools, or office essentials, acquiring the necessary assets can be a major financial undertaking.
One solution used by many businesses is to lease the equipment. By choosing to lease, businesses can spread out the cost of the equipment over several years through manageable monthly payments.
Leasing can also provide the flexibility to upgrade or replace obsolete equipment. However, leasing comes with its drawbacks, including the interest expense, finding the right lease and navigating the paperwork. Here are five considerations to keep in mind if you’re thinking of leasing business equipment.
It’s always a good idea to speak to a finance broker before leasing business equipment to compare your options and try to get preapproved for finance.