Lendingcapital.net BBB Business Review

Equipment Lease or Purchase?

April 30, 2024

Lease vs. Purchase

The challenge that faces all equipment and finance decision makers is to develop an effective strategy for purchasing and/or financing company assets. Managers must be able to accommodate both growth and change cost effectively. The fast pace of today’s “new economy” and e-commerce requires many managers to have flexibility in handling these ever-changing market conditions.

Most companies define assets as something that should appreciate in value. However, when you purchase most equipment, to include all types of technology, medical and lab equipment, material handling equipment etc, the overall effect is just the opposite with the fast pace of change as these assets could become actual working liabilities and depreciate in value. Leasing with LendingCapital will allow managers to acquire the “use” of the technology and other essential use, mission critical type assets, thus, not “own” the equipment but ensure these leased assets remain as cost effective assets to the business. Considering flexibility and other major reasons as listed below, leasing becomes a very cost-effective tool for acquiring and managing the asset through its useful life.


  • Financial Life equals useful life.
  • Leasing provides discipline and reduces costs.
  • Leasing eliminates excess equipment.
  • Replacing leased assets is cost effective and simple.
  • Leasing company assumes disposal responsibility.
  • Monthly Lease Payments
  • Cash Flow Flexibility
  • Newer technology increases productivity
  • Potential off-balance sheet financing and no restrictive covenants.


  • Book value is greater than market value at time of disposal.
  • Asset diversity and increases support costs.
  • Purchasing creates asset build-up.
  • Upgrading owned assets is expensive and cumbersome.
  • Disposal of owned assets can be highly time-consuming and an added expense.
  • Capital outlay.
  • Annual Budgeting and Forecasting Costs
  • Older assets reduce user productivity.
  • Reduction of cash available for other investment opportunities often referred to as Opportunity Costs


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