When it comes to getting new equipment, most businesses ask the same question: Should I lease or should I take out a loan? The truth is, both options can be smart — it just depends on your situation.
Think of leasing like renting. You make regular payments to use the equipment, and at the end of the term, you can often upgrade, extend, or sometimes buy it out.
Pros: Lower upfront cost, easier approvals, flexible terms, ability to upgrade more often.
Cons: You don’t technically “own” the equipment unless you buy it at the end.
Leasing is great if your industry changes fast, or if you prefer to keep payments lower and equipment newer.
With a loan, you borrow money to buy the equipment, then pay it back over time. Once it’s paid off, the equipment is yours.
Pros: You own the equipment outright, which can build long-term value.
Cons: Larger upfront costs, stricter approvals, and the equipment might lose value over time.
Loans are a good fit if the equipment has a long lifespan and you want to own it for the long haul.
It comes down to your business goals. If you want flexibility and lower payments, leasing is usually the way to go. If you want long-term ownership and stability, a loan may be the smarter move.
The good news? A broker can walk you through both options and find the one that matches your cash flow and growth plans.