Many New Zealand businesses delay purchasing equipment because they are unsure whether equipment finance or leasing is the better option.
The good news is that both options can help your business acquire the equipment it needs while preserving valuable working capital. The right solution simply depends on your business objectives.
What is Equipment Finance?
Equipment finance allows your business to purchase equipment by spreading the cost over an agreed term through regular repayments.
It can be a good option if you want to own the equipment and build equity in the asset over time.
Equipment finance may suit businesses purchasing:
• Medical equipment
• Construction equipment
• Manufacturing machinery
• Commercial vehicles
• Agricultural equipment
• IT equipment
• Office equipment
• Security systems
• And many other business assets
What is Equipment Leasing?
Equipment leasing allows your business to use equipment for an agreed rental over a fixed term without necessarily purchasing it outright.
Leasing can offer greater flexibility and may help businesses preserve cash flow while keeping equipment up to date.
It is often popular where businesses regularly upgrade equipment or wish to minimise their initial capital outlay.
Which Option is Best?
There is no single solution that suits every business.
The best option depends on several factors, including:
• Your cash flow requirements
• How long you expect to use the equipment
• Tax and accounting considerations
• Whether ownership is important
• Your future equipment replacement plans
An experienced finance specialist can help you determine which structure best suits your business.
We're Here to Help
At eLeasing, we help New Zealand businesses and organisations arrange equipment finance and leasing solutions for almost every type of business equipment.
Whether you're purchasing a single asset or multiple pieces of equipment from one or more suppliers, we'll help you find a solution that is simple, competitive and tailored to your needs.
If you're considering purchasing equipment and would like to discuss the available options, we'd be pleased to help.
