Most small business owners don't have enough working capital to buy the equipment they need.
Still, they opt for purchasing the equipment.
They look at its advantages but overlook its disadvantages.
Buying may seem the best option at first glance, but it might not be as cost-effective as it seems.
Drawbacks of Buying Equipments:

Your cash flow is adversely affected as you have to pay the full cost of the equipment at once.

Even if you get financing from a bank, you are under the pressure of paying regular installments.

Unlike leasing, the cost of the equipment doesn't get spread over time.

The risk of technological obsolescence is borne wholly by the company.

The payments made for business equipment are generally taxable.

As it weighs heavily on your bank account, you are left with little or nothing for other expenses.

You have to bear all the maintenance costs, including the risk of breakage or replacement, yourself.

The value of the asset gets depreciated over time and residual value cannot assure a good return.

Modern management systems prefer leasing to buying.
Leasing is a sophisticated synonym for hiring.
In a leasing agreement, a lessee gets the right to use an asset for a specific period of time against regular payments to be made to the lessor, who retains ownership of the asset.
Here are few benefits of leasing the equipment:

Through leasing, you get complete access to the equipment without paying its full cost.

You can use the working capital for other business expenses and emerging opportunities.

Leasing is treated as an expense, so it doesn't affect your credit limit.

Leasing covers all the related costs which include cost of installation, hiring and training.

Even if interest rates rise, your payments will remain the same if you can get the equipment on lease at fixed interest rates.

You can deduct the rental cost from your taxable income.
In this way you can enjoy certain tax benefits.

Leasing companies take the responsibility of maintaining the equipment.
If the equipment becomes obsolete, you can trade up for the latest equipment, depending on the agreement between you and the leasing company.

If you are new in the business, the leasing company's knowledge and expertise can be of great help to you.

Before making any decision, it is essential to thoroughly analyze the pros and cons of leasing.
Experts and special tips on websites can also help you make right choice at the right time.