It can be hard to know the best financing solution for your business or project. Whether you are expanding your office, manufacturing capacity, transportation fleet or heavy equipment, there are things to consider when deciding whether to buy or lease.
There is a lot of flexibility with lease structuring when compared with other kinds of financing. Leases can be structured as debt financing, called capital leases, or they can be structured as true rental contracts, called operating leases. The terms of repayment typically range from 24 to 60 months and can be specifically tailored to meet your business’ tax, accounting and cash flow requirements. In order to understand the benefits of these two general types of structures, it may be helpful to consider them separately.