Leasing can make sense when cash is tight. When equipment is purchased outright there are typically larger upfront costs. With leasing you just have a flat monthly payment and usually only first and last month’s payment is due up front. Many businesses opt to lease technologies like computers and copiers, because these items depreciate in value so fast, and then the businesses needn't worry about all the upkeep and disposal costs. Many lease agreements also come with the option to buy the equipment once the lease term ends. There are other benefits to leasing, too, says Rich Stim, an author on business issues and intellectual property. Every few years, or whenever the lease term ends, you can upgrade your equipment and get the latest gadgets and frills.
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