The Benefits of Leasing VS Buying Equipment

by RJ Grimshaw

Leasing or buying new equipment is a difficult decision for many businesses. It can be challenging to know which is the best option for your company. Luckily, there are many benefits of leasing equipment rather than buying it that make leasing a strong business solution. For example, with leasing, businesses can start small and gradually grow into more expensive purchases. You can also lease more than one item at once, so you don’t have to worry about investing in more than you need today. Let’s explore some other benefits of leasing over buying so you can make an informed decision!

The Benefits of Leasing Equipment

The benefits of leasing are plentiful. For one, it can be cheaper in the long run. When you lease, you’re not buying the equipment outright. Instead, you’re spreading out the payments over a certain time period. This can be cheaper than purchasing an item that will cost more for the same amount of time. You’ll also avoid paying sales tax on your purchase, which is beneficial if you only need the item for a short time or if you won’t make use of it often enough to justify purchasing it.

Additionally, there are many benefits of leasing when it comes to flexibility. For example, if you lease instead of buy, you can get more equipment later without having to worry about investing in too much, too soon. You don’t have to worry about making major upfront investments either; with leasing, all your payments are spread out over time so they’re easy to manage and more affordable on your budget. And since leases typically last only up to five years (though this may vary depending on your agreement), you know what you’re getting into and how long it lasts ahead of time – you’ll never have to deal with unexpected expenses. Finally, there’s no risk when leasing because at any point during your lease you can return the equipment for no additional fee or penalty – plus some companies provide their customers with warranties that cover damages or defects for an entire year.

The Benefits of Buying Equipment

If you want to make sure you are investing in the right equipment for your company, buying new equipment may be the best decision for you. When considering whether to buy new equipment, there are many benefits. For example, the upfront cost is the greatest investment you will have to make.

Yet, if you plan on keeping your office for a long time, buying new equipment can be a wise investment. Purchasing new equipment means that it is yours to keep and maintain so it’s not something that has to be leased or returned after some period of time. Buying also allows you to have more control over how your office operates because it is fully customized with your specifications. However, if you are looking for a customized solution without paying the full cost up-front, leasing may be the better option for your company.

What is a Hybrid Solution?

A hybrid solution is when you lease the equipment you need and purchase the rest. For example, if you have an office space with a large conference table, but are working out of a shared office space, you may want to only buy the desk and chair for your shared desk. This way, if you move to a permanent home with a larger conference table, you will already have the chairs and desk that would fit it.

The Benefits of a Hybrid Solution

One of the benefits of leasing is that it offers a hybrid solution. Most business owners don’t need to be completely committed to leasing or buying their equipment. With leasing, you can purchase your equipment at the start and then lease it back when you’re done with it. This way, you know that if your company grows, then the equipment will be available for you to use when needed. You can also do the opposite.

• Lease your items and buy them later on, so you don’t have to worry about purchasing them in one lump sum upfront. If you’re still not sure which solution is best for your business, consider these benefits of leasing over buying: Leasing is more affordable than buying outright

• You’ll save money by paying monthly instead of in one large up-front payment (and interest)

• Renting gives your business the flexibility to grow without expensive long-term commitments

• You can lease multiple items at once

• You get all the perks of ownership without actually owning anything

Conclusion

The benefits of leasing versus buying an item can depend on a number of factors. The cost of the items, the amount of time you need the equipment for and the predicted resale value can all play a role in making a decision between leasing and buying equipment. Some companies may even opt for a hybrid solution to get the benefits of both leasing and buying.

Leasing an item can be a great way to get items you may need for a short period, such as office furniture, while still being able to get brand new items without having to pay for them upfront. Buying an item is a great way to get equipment that will last years and help build your business in the long run. A hybrid solution is a great way to get the best results from both leasing and buying equipment.

RJ Grimshaw, President & CEO, UniFi Equipment Finance, has previously served on the ELFA’s (Equipment Leasing and Finance Association) Vendor and Captive Business Council Steering Committee, as well participated in the past two Industry Future Councils with the ELFA foundation. RJ is a lifelong student of business, and passionate about helping entrepreneurs succeed. UniFi Equipment Finance is a wholly-owned subsidiary of the Bank of Ann Arbor. RJ joined Bank of Ann Arbor in August 2013 as an Executive Vice President and Chief Sales Officer. With more than 20 years of experience in the equipment finance/ banking industry, he brings valuable experience in the areas of commercial banking, investment banking, and business banking.