Obtaining the use of machinery, vehicles or other equipment on a rental basis. This avoids the need to invest capital in equipment. Ownership rests in the hands of the financial institution or leasing company, while the business has the actual use of it..
Another way to keep equipment costs down is to lease instead of buy. These days, just about anything can be leased—from computers and heavy machinery to complete offices.
The kind of business you’re in and the type of equipment you’re considering are major factors in determining whether to lease or buy. If you’re just starting out and only need one computer, for instance, it probably makes more sense to buy. On the other hand, if you’re opening an office that will have several employees and require a dozen computers, you may want to look into leasing.