What Is the Advantage of Leasing Office Equipment?

As an entrepreneur, you will probably have a need for a variety of business equipment when starting up, expanding, or branching out into new avenues of business. Today, many business owners are finding

One of the primary benefits of leasing is being able to acquire equipment without significantly affecting your cash flow. This is particularly important for a new business with limited financial resources. Although leasing may mean you are spending more money over the long haul, the initial layout is much less than the cost of a major purchase. This will free up cash for your day-to-day operations or to meet other needs. In addition, it is typically easier to pay a lease than it is to obtain a loan for equipment purposes.

Of course, the benefits of leasing equipment depend on the nature of the equipment. One New York–based public relations firm, which is no longer in business, actually spent several hundred dollars a year leasing a coffee pot! Obviously, you need to determine the cost of the item were you to purchase it and the cash saved by leasing it. In addition, you want to consider whether or not there would be any resale value if you were to own the equipment.