The decision to buy or lease is a business decision. Consider the following when determining your answer:
- As a business owner, consider all of your options, which may include cash payment, financing, or leasing.
- Some business owners prefer leasing to purchasing to reduce their cash outlay. Leasing enables you to preserve your working capital for inventory, labor, and other normal costs of doing business. A normal lease will result in perpetual monthly payments, you never own the asset. There are leasing options structured with a final large payment to "buy-out" the lease and gain ownership of the asset.
- If you have the available cash, you could purchase the signs and avoid the additional expense of paying interest, and you avoid any monthly cash flow requirements.
- Bank financing, particularly if you include other assets, will result in the lowest monthly cash flow. Signs are assets eligible for inclusion in SBA loans.
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