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Equipment Leasing

When deciding to obtain equipment in your business, you are confronted with a critical question, do you buy or lease?  This decision may be relevant to your office equipment including your computers and office furniture or specialised equipment used in your production process.

There are many benefits in choosing a leasing finance option but you must study the lease agreement carefully.  Leasing equipment can assist your business stay up to date with the latest in technology, which delivers increased productivity.  You can preserve your working capital for other business purposes and realise tax benefits from a leasing solution.  On the downside, you may be paying a higher price over time for the equipment and you are locked into a term agreement, which limits flexibility.

Some important considerations are:

  • What equipment do you need and for what period?
  • Will your requirements change over time?
  • Should you seek the bundling of features into this agreement eg. Training and other services.
  • What is the current cost of finance and are you comfortable with the total payment cost?
 
1. Have you sought financial advice on how to structure the leasing agreement?
2. Have you read and do you understand the Terms & Conditions of the lease agreement?
3.  What insurance options exist to protect you from damage to the equipment?
4. Have you investigated the reputation and competitiveness of the proposed lease finance entity?
5. Do you want to own the equipment at the end of the term or upgrade?  How flexible is the lease agreement? 
 


 
 


Important - Read This: This information is intended to provide general information only which may not be applicable to your particular circumstances.  You agree to access this information at your own risk and that First Point Media Pty Ltd is not liable to you for the content of the information or any reliance by you on this information.


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