Want to boost the productivity and operations of your small business? If yes, getting the latest equipment and expanding your tools and inventory can really help. There are several options for getting the equipment your small business needs to succeed. Buying and leasing are both feasible solutions, depending on your business type and the financial constraints involved. Choosing between the two is not an easy task.
When equipment is so critical to day-to-day operations in many industries, small business owners must find the best way to include it in their inventory or fleet. Before choosing the right one, let’s go through the pros and cons linked to buying and leasing equipment in Abbotsford.
Pros Of Buying New Equipment
- When you buy equipment, you own it and can use it as per your convenience. Once you’ve paid for your equipment in full, no one else has any ownership rights.
- Considering the overall costs, purchasing is frequently less expensive than leasing as you don’t need to pay higher monthly instalments or rent.
- In many cases, significant tax benefits are available for the purchase of heavy equipment.
Cons Of Buying New Equipment
- High upfront cost can quickly deplete your savings, making it difficult for business owners without large financial reserves to make the acquisition.
- You are ultimately accountable for the equipment as it matures and approaches the end of its useful life.
- Selling or disposing of obsolete equipment may require a significant amount of time and work with a far greater commitment.
Pros Of Leasing Equipment
- Since the cost of the equipment is divided in instalments or monthly rents, you’ll have more cash in hand to cover costs associated with running a small business.
- Generally, the leasing company is responsible for handling equipment maintenance and repairs.
- Leasing allows you greater freedom to choose the machinery and even switch to a new one that best meets your productivity requirements.
Cons Of Leasing Equipment
- When you lease equipment, the total cost is typically higher than when you buy it completely.
- You must account for the fact that you will only be able to use the equipment for the duration of the lease.
- Even if your needs change to the point that you can no longer need the equipment, you are still responsible for the whole lease payment.
So, these were some easy to understand pros and cons of both buying and leasing an equipment to help you make the right choice. If you are looking for an equipment financing or commercial leasing company in Abbotsford, Sandhu & Sran Leasing & Financing is here to assist you right away. We readily help business owners in need of heavy machinery, industrial equipment, business tools, and more.
