There are two main options when you need equipment for your business, leasing or financing. Each has its advantages. Let us help you decide which is right for you.
- Leasing: With leasing, you don’t own the equipment; you’re essentially renting it for a specified period. At the end of the lease term, you typically have the option to return the equipment, renew the lease, or purchase the equipment at its residual value.
- Financing: Equipment financing involves taking out a loan to purchase the equipment outright. Once the loan is paid off, you own the equipment outright.
What is a Sale/Leaseback?
In a sale/leaseback transaction, the owner of an asset sells it to someone else, usually a finance company, then immediately leases the asset back from the buyer.
Is a Sale/Leaseback Right for You?
The advantage of a sale/leaseback is that it allows the owner of an asset to free up cash/capital. As with a regular lease, a sale/leaseback gives you the ability to purchase equipment your business needs without using up your cash or line of credit.