When you’re moving into a new space, it can be tempting to go on a shopping spree to furnish your entire office. Before you buy – especially if you are strapped for cash – you may want to think about a different option: leasing your furniture.
When to Buy
Buying your furniture can be a benefit to your business. For example, there are tax incentives associated with investing in equipment and furniture.
And you plan to be in your new location for several years, then buying your furniture will likely make the most sense. After all, you can lease furniture for years and never own it, and you may end up spending more than you would have if you had just bought it originally.
Tip: Always seek advice from your trusted financial advisor
when considering major purchases.
When to Lease
Leasing can be a good idea if your workspace is temporary or if you are especially tight on capital. Unlike buying furniture, there is often little or no down payment on leased furniture.
- If you have a flexible budget or there tax incentives that make purchasing feasible, you’ll likely want to buy — or, perhaps, finance.
- Over the long run, you’ll probably pay more by leasing–and own nothing after spending that money.
- If you’re not sure about your location or need more cash on hand, you should consider leasing until you feel more stable.
Every situation is unique, however. This is something you should talk over with your accountant or other tax or financial advisor.