Chapel Hill Business Equipment - Buy vs. Lease - (919) 847-6800
We are often asked should I buy or lease a business asset. If it is a vehicle and we are talking about 3 years, it is about a “push.” If you lease or purchase the tax benefits are about the same.
However, when it comes to cash flow planning often times a lease is more attractive. The lease payment is almost always a little more than the debt repayment, however, many banks and finance companies are requiring 10-20% down on the financing.
Leasing allows you to put 0% down and conserve your capital. Talk to us if you are considering purchasing business assets. Whether you pay cash, finance or lease (capital lease) a business asset, you will mostly likely be able to expense 100% of the purchase price for tax purposes.