The Good and Bad thoughts on Leasing…
Good: The advantage and ease of credit approval, speed and tax benefits are main reasons companies choose equipment leasing.
About 80% of businesses lease a portion of their equipment. Equipment leasing affords business owners the ability to grow their businesses without a great deal out of pocket expenses. Leasing can be an appropriate for any business at any stage of development. But when it comes to startup businesses, it is likely the owner will be obliged to put his or her personal credit on the line in order to secure the lease.
Bad: Leasing also has a downside. The lifetime cost is generally going to be higher than if you purchased it. You also give up any ownership interest, which can be especially costly if you rely on the equipment and find at the end of the lease that the equipment is too expensive to purchase outright. You may also lose the tax benefits of depreciation deductions.