Financing vs. Leasing — Which Is Better for a Small Business?

[DavidMack]

I’m trying to figure out whether to finance or lease a new mini excavator for my small landscaping business. I don’t have huge cash reserves, but I want to build equity eventually. Leasing seems attractive for lower monthly payments but I’m not sure about end-of-term options. What’s worked for you guys? Any pitfalls with balloon payments or interest rates? Also, how does equipment depreciation factor into your decision? I need something that keeps cash flow healthy while growing the business. Thanks for your input!

[Author]

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