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Should You Lease or Buy Your Tech Equipment?

Find out which option is right for your business with this in-depth look into the pros and cons of each.
October 10, 2005
URL: http://www.entrepreneur.com/article/80230

The next time your business needs new computers, networking equipment or other technology, should you buy it or lease it? If you don't know, read on. This month we'll take a look at the benefits--and downsides--of both leasing and buying technology equipment, plus the questions you should ask to ensure you get the best deal.

Leasing: The Benefits

Leasing: The Downsides

Buying: The Benefits

Buying: The Downsides

Asking the Right Questions
If you're thinking about leasing equipment, you'll need to do your homework to ensure you get the most favorable terms. Here are a few questions that'll help you get started:

Ultimately, a few simple rules of thumb may help you decide to lease or buy. If your equipment requirements are relatively small and you have the money--or can get a low-interest loan--then just buy it. You'll save money in the long run. However, if you require a substantial amount of equipment, such as computers for your new company's 10 employees, leasing may be a better option. After all, why tie up a large amount of cash--especially when you could use that money to establish or grow your business?