What are the pros and cons of renting furniture, accessories and equipment for a small business? Any advice will be appreciated, Thanks!
many things such as copiers and expensive things like, lease most people. In general, you do not want to buy a bunch of things like that, because there is always a new model to come that you may be able to update.
I can not see any advantage to furniture leasing. The only time you really want to do is if you had to get a ton of things you can not afford to buy outright. Rental rates are more expensive than just make a small loan and buy the same stuff.
Furniture will not be obsolete.
If you rent things like a car .. Once again the rental fees are higher than borrowing costs to own .. and also leases vehicles have stipulations as to mileage, vehicle condition, etc. .. and if you are going to rent a truck to carry heavy dirty, etc. .. bad idea!
things that will constantly need to be repaired is better to rent than to buy because you usually get a certain amount of repairs included in the lease at no additional cost.
If you think you want you own .. rent to own then EXCLUDE .. buy it with cash funding if necessary, but do not pay years of lease payments, because they do little to reduce the cost of an item that you want to buy.
The advantages are that the entire payment is tax deductible in the year that you pay. Otherwise you have to amortize the costs over several years. Also, if you rent, you can turn them into new or current equipment at the end of your lease contract rather than being stuck with obsolete equipment. The disadvantages are that you'll probably pay a little more for items than if you bought.
Posted on March 20, 2010.
