Choosing between financing and leasing depends on your business needs, cash flow, and long-term plans for the equipment. Here is a comparison to help you decide.
Equipment Financing (BizEQ Purchase):
- Ownership: You own the equipment outright once the loan is paid off.
- Depreciation: You may be able to depreciate the asset on your tax return.
- Higher Payments: Monthly payments are typically higher than lease payments because you are paying the full purchase price.
- Best For: Equipment with a long useful life that you plan to keep for many years.
Equipment Leasing (BizEQ Lease):
- No Ownership (Initially): You use the equipment during the lease but do not own it until you exercise a purchase option at the end.
- Lower Payments: Monthly costs are lower since you are not paying the full value upfront.
- Flexibility: At lease end, you can return the equipment, buy it, or upgrade to the latest model.
- Tax Treatment: Lease payments may be fully deductible as a business expense (consult your tax advisor).
- Best For: Equipment that becomes outdated quickly (technology, medical devices) or when you want to preserve cash flow.
Hybrid Option (BizEQ Flex): If you are unsure, BizEQ Flex lets you start with lease payments and convert to ownership later. This gives you time to evaluate the equipment before committing to a full purchase.
To discuss your options, schedule an appointment through MyRMO or by calling us to speak with an Expert.