Most companies need some kind of equipment to operate, whether it is a lawnmower, a copier or a power washer. If you run a new or small business, or if money is simply tight at the moment, you may struggle to buy the equipment you need outright. However, you have several options to help you get the tools you need to complete your work.

Equipment Leasing

Equipment leasing works well if you need the equipment for a short amount of time. You sign a rental agreement with a company that owns the equipment that you need. You are then responsible for a monthly bill to keep up with the terms of the rental agreement. Depending on the vendor, you may be able to choose between a capital lease and an operating lease. With a capital lease, you have to pay more money every month, but you can easily buy the equipment for a small price when the lease ends. On the other hand, you do not have to pay as much each month with operating leases, but if you want to own the equipment, you will have to pay the full price when the lease finishes. Your financial situation and how long you need the equipment will determine which option is better for you.

Equipment Finance

For situations where you know that you need the equipment long-term, you should consider equipment finance. In this kind of financial solution, you take out a loan from a lender and use that money for the equipment you need. As with any loan, you have to make payments until you have returned all of the lender’s money as well as the interest the loan has accrued. Before signing any agreements, which are legally binding, make sure you fully understand the amount of interest you will be charged. One of the results of this method is that you own the item after you finish paying off the loan. While this is a benefit for some people, you don’t want to waste money and space on a large or bulky piece of equipment that you only need a few times a year.

Many factors influence whether equipment leasing or equipment finance is better for you. Keep in mind your budget, the amount of wear and tear you expect the equipment to undergo, how often you will use the equipment and how much storage room you have so that you can make the most informed decision possible.