Good questions, but while these are ways to acquire equipment, a lease can most often be a better alternative. 

A general rule for leasing is, if your company makes money and you wish to lessen your tax liability, leasing can most often lower your tax exposure by allowing you to “expense” every lease payment. In addition, you only show the balance of the lease payments for the calendar year, not the entire lease balance. Always consult your tax advisor first to make sure whichever option you choose is best for your company.  

When you acquire the equipment you need by getting a loan at your bank, you then decrease the credit availability you have. This could affect other needs you may have in the future.

Paying for equipment with cash is like paying a new employee a years’ salary on their first day. Your equipment, like that new employee, should make and earn their own way. Why pay cash from after tax dollars? Again, talk to your tax advisor.

Contact us and we will tell you how we can structure a lease that makes the most economical sense for your company. Whether you need skip payments during your slow periods or payments that start low and increase over time, we can help.