What are the risks of leasing versus buying office equipment?

Answer:

Lease vs. Buy of Equipment

Here is a great article from Cisco regarding leasing vs. buying of equipment:

  • http://www.cisco.com/web/about/ac123/iqmagazine/archives/q4_2004/departments/net_strategies/financing.html

Unfortunately, the above page is no longer available.

Here's a quick comparision:

Leasing = a non-cancelable contract over a fixed term

  • 100% Financing
  • Conserves Working Capital
  • May lessen tax liability
  • Hedges against inflation
  • Matches the cost with the benefit of use over time

Buying = cash purchase

  • No finance charges
  • Direct ownership
  • Allows you to take depreciation on your tax return
Contributor: Crystal
First answer by Crystal. Last edit by DukeAdams. Contributor trust: 3 [recommend contributor recommended]. Question popularity: 34 [recommend question].