You need to buy or replace a piece of equipment. The reflex is often to take the money from the line of credit, because it is there. Before you do, ask yourself one question: what will be left for the unexpected?
What your line of credit is for
Your line of credit keeps the business running: payroll, inventory, the unexpected. If a piece of equipment ties it up for years, it is no longer there when you need it.
What leasing changes
With a lease, the equipment is paid monthly. The payments are predictable and follow the useful life of the equipment. Your working capital stays available for payroll and suppliers.
This applies to machinery, trucks and professional equipment, new or used. And if you have already paid for a piece of equipment, refinancing can also be looked at.
Loan or lease?
With a loan, you own the equipment from the start. With a lease, the lender remains the owner during the contract, and you can generally buy the equipment back at the end. The right choice depends on your business and the equipment. For the tax side, check with your accountant.
I prepare your file and present it to more than 10 lending partners. You compare and you decide. See the Equipment page.