In today's rapidly evolving digital landscape, technology serves as the backbone of countless industries, propelling them toward greater efficiency and innovation. For instance, the financial sector has seen the emergence of sophisticated algorithms for predictive analytics, while the medical field boasts advancements like robotic surgery and AI-powered diagnostics.

Despite the transformative potential of such high-tech tools, acquiring them may feel cumbersome due to steep costs. However, financial products such as business loans may make these innovative technologies accessible, enabling professionals to equip themselves with the best tools.

Key considerations

While buying may be a better strategy for new office space or an established business model, technology depreciates over time and leasing may save you money in the future.
Leasing allows for easier upgrades, ensuring access to the latest technology without a large capital outlay.
Leasing often includes maintenance and warranty coverage, reducing the risk of unforeseen expenses.

When to pursue leasing vs buying equipment

Each approach to acquiring equipment—whether leasing or buying—introduces distinct challenges and opportunities, as doing so can help propel your business forward. But for solopreneurs or those who are already spending money on a partnership buy-in, costs quickly become a factor when thinking about upgrading equipm

Determining the path forward that works best for your needs depends on various factors, including financial health, long-term business goals, and how the equipment used will support day-to-day operations.

Examining the benefits of equipment leasing

While you won’t own the equipment, leasing still offers benefits that may be worth further consideration.

No or low upfront costs

Leasing equipment typically involves minimal initial expenses, allowing businesses to preserve cash flow and allocate resources to other opportunities.

Buy-out option at end of lease

Many lease agreements offer a buy-out option, enabling businesses to purchase the equipment at the end of the lease term if it proves valuable and you are certain your investment will continue to pay off.

Warranties and owner-maintenance

Leased equipment often comes with comprehensive warranties and maintenance packages, reducing the lessee's burden of managing and repairing the machinery.

Examining the benefits of buying equipment

Invest in new technology or equipment

Purchasing equipment allows businesses to invest directly in the latest technology, ensuring they stay competitive and up-to-date with industry standards and best practices.

Own or sell your machinery

Ownership of equipment provides the flexibility to sell or trade it, offering potential returns on investment and asset liquidity.

Use your equipment freely

Ownership eliminates usage restrictions typically found in lease agreements, giving businesses full control over their equipment's operation and deployment.

How BHG Financial can help with equipment leasing

BHG Financial offers highly specialized business financing up to $500,000,^1,2 which can be used to lease equipment. With repayment terms of up to 12 years,¹you can keep operating your business—or start your new venture—with the equipment you need.

Our dedicated concierge service teamis available to tailor a financial solution to meet your needs throughout the process. You can get started by quickly viewing your personalized estimate using our payment estimator.

Leasing vs buying equipment FAQs

How does depreciation affect buying equipment?

Purchased equipment depreciates in quality and value over time, which can impact its functionality, resale value, and your overall return on investment.

Can I upgrade leased equipment during the lease term?

Many leasing agreements allow for equipment upgrades, ensuring you always have access to the latest technology.

Is buying equipment more cost-effective in the long run?

Buying equipment may be the more cost-effective option compared to leasing if the equipment is high-quality and requires minimal maintenance.

How does leasing impact your company's balance sheet?

Leasing typically appears as an operational expense, which can help keep liabilities lower compared to using working capital loans used for purchasing equipment.

Are there tax advantages to leasing or buying equipment?

Both leasing and buying have potential tax benefits, such as deducting lease payments as business expenses or claiming depreciation on purchased assets.

Starting a financial advisory firm FAQs

Not all solutions, loan amounts, rates or terms are available in all states.

¹Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.

² BHG Financial business loans typically range from $20,000 to $250,000; however, well-qualified borrowers may be eligible for business loans up to $500,000.

Business Loan Repayment Example: A $94,695 commercial loan with a 9-year term and an APR of 14.8% would require monthly payments of $1,633.

For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license - Number 603G493.

IMPORTANT INFORMATION ABOUT ESTABLISHING A NEW CUSTOMER RELATIONSHIP To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies every customer. What this means for you: When you apply for a loan, we will ask for your name, address, date of birth, social security number and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents. If all required documentation is not provided, we may be unable to establish a customer relationship with you.