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Lease vs. Rent

The decision to lease vs. rent really depends on what you need. If the asset is integral to your business and you need it there all the time then leasing is your best option. The security and guarantee provided by a lease is important, and it ensures your business has what it needs. For short term periods where you don't need an asset in your business year round then renting is likely a better option. Renting may cost more over that short term period but the total cost to you will be lower since you won't have the asset for many years.

Other areas where rentals work out are in industries that are rapidly evolving technology wise. In some industries assets become outdated within 1 or 2 years, and a lease could leave you holding outdated assets for 5 or 10 year terms. Ultimately the decision to lease or rent depends on your needs and your industry.

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