When it’s time to shop for equipment for your business, one of the trickiest questions can be whether to buy or lease.
Buying is usually cheaper over the life of the asset, but leasing generally requires less cash upfront, putting less strain on cash flow. Buying typically gives you more flexibility for altering or selling machinery if needed, while leasing may offer more options for keeping up to date with the latest, cutting-edge gear.
“Ultimately, what it comes down to most is what you value as a business owner and what’s going to work best for your short- and long-term goals,” says BDC Senior Account Manager Curtis LaButte. “Each entrepreneur has their own preferences, just like some people like to lease a new car every two years.”