Lease or Buy

Lease or Buy

Fixed assets are normal in business operations.  However, financing those assets is the critical issue.  If you buy the asset outright, you tie up capital that can be used to expand operations or keep overall costs low in operating the company.  You can buy the asset paying a down payment and borrowing funds from a lending institution and make payments over time.  This is still a form of purchasing the asset.  However, there is another option, leasing.