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Should You Buy, Lease or Rent Your Manufacturing Equipment?

Should You Buy, Lease or Rent Your Manufacturing Equipment?

If you’re a small business in need of equipment, then you have three options open to you: buy, lease or rent.

The right answer depends on your company. You have to look at your tax situation and your financial statements and the effect that renting, buying or leasing will have on them. If you’re a manufacturing company, you’ll have this decision to make.


Renting is a good option for those who need to conserve capital. You can try the equipment for as long as you need it for, and then you can buy it if you feel that it would be prudent.

Renting means that the dealer maintains the equipment, so you don’t have pay out for upkeep. If a piece of machinery breaks down, the dealer will fix it, and if the repair takes a long time, then they will usually replace it.

Contractors will often rent when they need a specific item for a particular job, and add it on to the job pricing.

If you want to learn more about a specific product or try it out before you invest, then renting presents little risk and offers flexibility. It also offers you more freedom to keep up with technology.

Before you rent, you should ask these questions.


Buying equipment offers immediate ownership. You can build equity in your companies through buying equipment. It can work out cheaper than paying for renting, especially if you find yourself renting the same equipment regularly. Biesse UK, for instance, offers CNC routers as well as other woodworking and manufacturing equipment.

While you might think that buying will mean that you’re lumped with a piece of equipment that you might not need, this is not necessarily the case. First, you must think carefully about why you need a certain piece of equipment, and how often it would be used. Secondly, if you do find that you’re not using it as often as anticipated, you can rent it out yourself.

A Combination

The way that you’ll save money as a business is by being able to analyse your needs effectively, and deciding whether renting or buying is best for you financially. And often, you’ll find that a combination is best.

If frequency of use or the versatility of a piece of equipment is high, then it makes sense to buy it, but if the reverse is true, then the case for renting is higher.

An exception might be equipment that is needed in an emergency. Not often needed, but when it is needed it is needed immediately. Equipment needed in this capacity is often best bought.

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