For many small- and medium-sized businesses, buying equipment outright may not make sense, whether due to financial concerns, shifting long-term needs, or worries about the technology quickly becoming obsolete. In these cases, the businesses often opt to lease the equipment.
Companies that choose to finance equipment are increasingly doing so through leasing. From 2012 to 2016, the use of a lease as the equipment financing method increased from 17% to 39%, according to one industry group’s study. It’s not a commitment you want to make without doing your homework, however. Here are some aspects of an equipment lease agreement you may want to scrutinize before agreeing to anything.