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You have similar credit qualifications necessary for leasing, as for a loan.
Leasing typically costs more in carrying costs, but it does two things, it allows you to write off 100% of the lease payment as an operating expense (rather than capitalizing and depreciating) and it technically does not use up your borrowing power as a loan would. Lease payments are considered rentals in the eyes of the law.
Now, you have to be careful what the end of lease options are. In order to be a legal lease, there must be 'fair market' buyout at the end of the term (or you have the option of just giving back the equipment). Typically you would do a 'stretch' lease, say, 27 month lease FMV, with a defined early buyout option at the 24 month point. Plan to exercise the buyout option. If you miss that, you will end up paying extra.
A lease does NOT confer any extra benefits in the way of warranty or support throughout the term of the lease - that is still up to you. You also cannot sell a leased machine, or move it out of province or give it away or whatever -- it remains the property of the leasing company until (or unless) it is bought out.
Leasing typically costs more in carrying costs, but it does two things, it allows you to write off 100% of the lease payment as an operating expense (rather than capitalizing and depreciating) and it technically does not use up your borrowing power as a loan would. Lease payments are considered rentals in the eyes of the law.
Now, you have to be careful what the end of lease options are. In order to be a legal lease, there must be 'fair market' buyout at the end of the term (or you have the option of just giving back the equipment). Typically you would do a 'stretch' lease, say, 27 month lease FMV, with a defined early buyout option at the 24 month point. Plan to exercise the buyout option. If you miss that, you will end up paying extra.
A lease does NOT confer any extra benefits in the way of warranty or support throughout the term of the lease - that is still up to you. You also cannot sell a leased machine, or move it out of province or give it away or whatever -- it remains the property of the leasing company until (or unless) it is bought out.
