Leasing Business Equipment

Many businesses save money with equipment leasing instead of buying their equipment outright. This is especially true when your equipment needs to be replaced every two to five years. However, before you lease equipment, ask a few questions about your business and potential leasing companies to ensure that leasing equipment makes sense for your company.

3 Questions to Ask Before Leasing Equipment

How Will You Use the Equipment?

Before leasing any equipment for your business, look at considerations that could potentially affect your operations such as how long you want to use the equipment for, how long it needs to last, how long equipment of that type tends to remain in good, maintenance-free condition without additional expenses, and how heavily your company will use it.

What Is the Entire Cost of Leasing?

Leasing costs do not only come in the form of lease payments; there may also be maintenance and equipment operating costs, late-fee, insurance and other considerations, and with some companies, penalties for ending a lease early. Compare the equipment leasing payments you plan to make to the profits the equipment could potentially generate.

What Happens in Cases of Damage?

Equipment can and does get damaged occasionally, and sometimes, the damage is beyond repair. Investigate how much your business will be liable for in case of damage and whether your company could potentially handle such costs. Insurance or maintenance contracts is another option to consider that can potentially cover these costs.

Compare Leasing Companies

Asking these three questions about leasing gives you an excellent idea of how affordable equipment leasing can be for your company. The last two questions can also help you better compare leasing companies and the incentives they can offer with your lease.