Lease vs. buy assets – help your small business customers decide

Lease vs. buy assets – help your small business customers decide

Borrowing money’s not always essential when it comes to assets. And if you’ve got small business customers who are thinking of doing just that, it might be a good idea to help them decide if purchasing is the best way to go for their business.

Help them to think about whether leasing is the way forward. If they decide to lease an asset, they won’t have to hand over a large chunk of cash. That cash could maintain their reserves, be used to invest in more stock, or to develop a new product or service.

Sit down with them and calculate the potential impact to their business’s cash flow if they were to purchase each asset outright in cash, lease the assets they need, or take out a small business loan.

If they decide to buy, get them to check with their accountant about any planned business asset purchases. Discuss the potential impact the purchase may have on their cash flow, as well what alternative options might be available.

Quickbooks has an article about the pros and cons of leasing vs. buying that’s worth sharing with your small business customers.

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Glen Senior
Glen Senior

CEO Glen Senior has been helping small businesses start and grow since 1989. Along the way, he has published 6 books on small business development and business planning, created training courses, built e-learning platforms, and developed Microsoft USA’s Small Business Plus program which was delivered into 9 countries.Since 2005 Glen has focused on the banking sector and has built up an extensive knowledge of how banks can engage with the small business segment. He has presented at a number of small business banking conferences and is sought out as an opinion leader in this space.