Starting a small business, especially in the current climate, is something that requires plenty of thought, consideration, and the right choices to be made throughout the process. One of the key questions a new small business owner will find themselves asking time and again is ‘do I really need to buy this?’, largely because finances will be so tight, and it therefore only makes sense to spend money exactly when doing so cannot be avoided. Leasing, rather than buying something outright, is often a far more suitable option for small business owners and can make a world of difference when it comes to balancing the books, while also allowing a company to grow sustainably. So, with that in mind, we address the question: is leasing a better option than buying for you and your business?
1. Leasing is cheaper than buying
This is an obvious one. Buying something outright – especially if it is a piece of bespoke equipment or kit – means you will have to spend a hefty amount of money in one fell swoop. Leasing, however, is far more affordable because you will be able to pay monthly, and it means you won’t end up being lumbered with an item in the future if your business outgrows it, or if your processes alter.
2. Leasing offers flexibility
Technology is continually advancing apace, and by leasing equipment, you can upgrade and enhance the kit you use as and when you want. When you buy something, it loses value almost instantly and you may have to sell it on before being able to afford the latest upgrades and enhancements; with leasing, this barrier doesn’t exist.
3. You don’t have as much responsibility
When you buy a piece of equipment it becomes your property, and this means you will be responsible for maintenance, upkeep and, ultimately, disposal. When leasing a piece of equipment, you are of course obliged to refrain from abusing it, but if something goes wrong, you will generally be able to get assistance via the leasing company to get it fixed promptly. Also, depending on the leasing deal, this upkeep may not actually end up costing you a penny.
4. You will always be supported
One of the key benefits of leasing equipment – but something that can easily be overlooked – is that it engenders a relationship between supplier and customer, and means that help and assistance will be on offer exactly when it is required. When purchasing an item outright, the buyer is often left to their own devices, and will not have access to immediate support.
Is leasing a better option than buying? Find out more
Read our example of Lease vs Buy here and find out more about how we can help you obtain equipment for your business. Or get in touch with us now to find out more about this and our other financial solutions to help small businesses.