There are several reasons why leasing rather than buying equipment may be a more attractive option for your company. The main one is that there is no large down payment or high interest rates to consider, often making leasing the more affordable option. With a lease, the lessor is technically still the owner of the equipment and you’re paying them a fee to borrow it.
There are two major types of leases: finance and operating. A finance lease functions as a sort of loan alternative, and it is used when you want to own the equipment in the long term. A common example of this is the “rent to own” model. An operating lease is more like a rental agreement, and in most cases, you will return the equipment to the lessor once the lease is up.
