How should a business use its money for equipment. Is it better to buy or lease? New or used?

The goal of any business is to be as profitable as possible. Therefore, when considering whether to purchase or lease equipment or a building, assess your company's balance sheet. If you are operating a start-up business with limited capital, it would be best to opt for leasing or a purchase/lease agreement. If you wish to build a new plant and equip it anew, you may want to follow the trend of erecting a building financed by a third party and agreeing to a 10- or 15-year lease. The equipment is thus capitalized, which means you are using capital for the production of goods that generate a gross margin. Meanwhile, the building is a fixed monthly expenditure, enabling you to maintain your capital for purchasing additional production equipment. Whether you buy new or used equipment depends on the nature of your business, based on detailed analysis and good planning. In general, very good used equipment can be had at a price that is around 30% to 40% lower than that of new equipment. Don’t forget, however, to consider maintenance of the equipment. BDC Consulting can help you.