To Buy Or Not To Buy?

Regardless of industry or business size, technology-based equipment-computers, multifunctional devices, fax machines, copiers, phone systems-is a must-have for practically every business. The high price of technology equipment usually prevents most businesses from purchasing it outright, and many entrepreneurs aren't interested in spending enormous amounts of money for equipment that could become obsolete in just a matter of months.

In Dennen's case, leasing offered more flexibility than a loan. Loans are certainly the way to go if you want to eventually own the equipment and are comfortable with the in-depth approval process and down payment required. But considering the twists and turns businesses are bound to experience, having to make loan payments on equipment you don't use anymore when your business changes is the last thing you really need.

This article was originally published in the January 2001 print edition of Entrepreneur with the headline: To Buy Or Not To Buy?.