Any conventional bank, commercial lender or leasing source you choose is acceptable.

To Lease or Buy?

Lease financing has become a popular tool for many businesses, eliminating large outlays of cash required for outright purchases.  Some plans may not require any money down.

Your equipment investment should not be large, but compare the potential tax savings from leasing to those of buying the equipment outright.  These possible savings apply to both new and used equipment.  See your accountant for current rulings to be sure your potential lease financing will qualify for tax write-offs.

If your start-up capital is limited, you should explore leasing as an alternative.  With leasing, your initial cash outlay can be significantly less than buying on installments.  The disadvantage:  If you have a legitimate tax-deductible lease, you do not acquire equity in your equipment, and therefore, do not build up your balance sheet.  A financial statement showing a strong net worth is important to any business. In addition, the total cost of leasing over a period of years is higher than if the same items were purchased.

Remember that your local County Tax Collector may have a Business Personal Property tax that may be assessed on your capital equipment, inventory and leases.  Taxes may be assessed differently on leases vs. assets. Consult your accountant for any advice on this option.