Is it better to own or lease equipments for small businesses?

1. Is it better to own or lease equipments for small businesses? Why not both? There are several companies that offer small business equipment financing with the benefit of owning the equipment after the end of lease term. These are called lease-to-own programs, and they are perfect for those who would prefer to own their equipment but may not have the funding immediately available. In a lease-to-own program, you will have a fixed monthly payment which is 100% tax deductible. Lease terms vary depending on your needs and can be as long as 66 months for established businesses. After the end of your lease term, you may exercise your purchase option, which is a one-time payment that can be structured as either a percentage of your original equipment cost or a flat payment of a few dollars. Once this purchase option is executed, the title and ownership of the equipment will be transferred to you, which means that you then own the equipment free and clear. However, before choosing a lease-to-own program, ensure that there are no hidden fees or costs associated with your lease. Additionally, your entire cost, including your fixed monthly payment, your initial payment and your purchase option should be clearly presented to you upfront before signing.