Buying or Leasing Equipment

As a small business owner, you'll probably need some type of equipment, whether it's office furniture, a computer system, or, for some, perhaps even some heavy manufacturing equipment.

For any equipment, the process is the same:

• First, you'll have to determine what you need.
• Next, you'll have to determine how best to acquire it (for example, whether you should buy or rent).
• Finally, you'll have to determine how to install it and maintain it.

Leasing your equipment. If you decide to lease your equipment, you'll have to enter into a lease agreement. Since a lease agreement is a legal contract, you should consult with your attorney before signing the agreement. Equipment lease agreements vary depending on the situation, so compiling a list of every issue that could be addressed by such a lease isn't possible. However, you can become familiar with the provisions found in most equipment leases.

To learn more about the most important provisions in equipment leases, check out the equipment lease checklist in the Business Tools area.