To Lease or Not To Lease

The following information can help you evaluate whether or not leasing might be a better alternative for you. Carefully consider your situation as it relates to each question, and make a note of whether your response is 'Yes' or 'No':

• Is the asset expected to depreciate or decrease in value over time?
  
  
• Is the equipment or technology likely to be replaced or upgraded within 5 to 7 years?
  
  
• Does the business have plans to increase revenues or expand operations in the near future?
  
  
• Could the business benefit from an expansion of available capital?
  
  
• Is the business likely to benefit by keeping operating credit lines available for planned and/or unforseen future needs?
  
  
• Is it possible that the decision to add new equipment may be postponed due to a lack of necessary capital?
  
  
• Could the funds necessary for an equipment purchase be used to earn a higher return by investing elsewhere within or outside the business?
  
  
• Will a disruption in cash flow resulting from a large purchase cause management concern or possibly hamper normal operations?
  
  
• Would you prefer to avoid having to request additional funds from your banker?

If you answered 'yes' to 3 or more of the above questions, you should definitely consider leasing as a possible alternative when acquiring new equipment.

Leasing may not be the best option where:

- The company has a surplus of capital available for investment.
- The asset is expected to appreciate in value over time.

To compare the advantages of our leasing plans against a bank loan or a cash purchase, visit our Leasing Comparison.

For larger transactions, you may prefer to have us prepare a Lease-vs-Purchase analysis for you. If you have any questions about determining whether or not leasing is the right choice for you Contact Us.