‘Should I lease or buy?’ – That’s the decision facing many business owners as they choose to invest in new equipment or technology.
You’re not alone. More and more small companies are using leasing to finance their needs, helping them safeguard their working capital and offering a flexible way to access the latest kit. Answer the following questions to see if it’s worth considering leasing for your next purchase.
1. How often do you find yourself putting off investment in equipment or business assets for financial reasons?
a. Regularly
b. Sometimes
c. Never
2. Do you ever settle for a ‘standard’ model or specification because you can’t afford the better option?
a. Regularly
b. Sometimes
c. Never
3. How important is it that your business has the latest equipment?
a. Very important
b. ‘Nice to have’
c. Not important at all
4. How challenging is it for your business to maintain healthy cash flow?
a. Very challenging
b. Moderately challenging
c. Not a challenge
5. How likely is your business to expand over the next 5 years?
a. Very likely
b. Somewhat likely
c. Not likely
If you answered mostly a’s, then leasing is a great option for your business. Read on to find out more about the benefits.
Mostly b’s means leasing could be a good option for you and your business. It’s definitely worth considering your business plans and comparing the relative benefits of leasing vs. buying outright.
More than 3 c’s indicates leasing may not be right for your business at the moment, but it is always best to explore the options. We can help you to understand if the speed and simplicity of lease financing could help you now or in the future.
Why leasing works for businesses
If you’re restricted by lack of capital or have pressure on cash flow, then leasing can unlock access to the best equipment to help drive business success. Leasing gives you regular yet flexible payments and helps you keep your cash in the business. It also means that you’re potentially generating revenue from the equipment from day one rather than recouping the investment in purchased equipment.
Many businesses make a large capital outlay to buy their kit, only to see it become outdated. Leasing agreements mean that you can renew or upgrade at the end of the term – keeping you at the cutting edge of technology. They can be flexible too, changing as your business grows.
Key takeaways
- If cash flow is a challenge, then leasing is a great alternative to buying
- Leasing equipment helps keep cash in your business and means you don’t have to worry about the return on investment on expensive kit
- Contrary to misconceptions about fixed, long-term commitments, leasing is flexible and can adapt to your businesses needs
