Tons of startups and small businesses faces challenges specially when it comes to financing. One way to lessen this burden is to look for equipment that could be leased for a defined period. Constant update of equipment like computers or machineries is also one of the reason small to big companies agree to leasing. This strategy as you call it eliminates futility of equipment that is developing continuously at rapid pace.

How to help a company decide whether to lease or purchase? Well, for one, the company needs to distinguish how long and to what extent does the equipment is needed. Below are some pointers to keep in mind before pushing to with leasing.

1. What kind of equipment do you intend to have?
2. Do you need the equipment long term? If not, then how long?
3. Does that equipment constantly and rapidly being developed? How fast would it become outdated?
4. How many of the equipment is needed?
5. How often does the equipment be used?
6. Do your company have enough asset to achieve acceptable number of equipment, in the future?
7. What is your budget?

Advantages and Disadvantages of Leasing

To create a more relevant plan when it comes to renting of machines, we listed below the perks and fails of leasing equipment.


1. Low cost Low cost when thinking short-term renting of equipment
2. More savings There will not be any depreciation report needed and lease cost will just be added as expenditure without any property tax needed
3. More credit Leasing is not a loan, hence, there will be more credit lines for other needs
4. Simpler upgrades Easier upgrade of equipment ones the lease has expired
5. Simpler process For startups and small businesses, leasing is the easiest way to have large equipment since loans are difficult to get approved.


1. High cost High cost when thinking long-term renting of equipment
2. Equipment lease duration contract Contract of leasing an equipment must be followed even if there’s a new equipment that may do the work faster or match the requirements much better.

How to lease equipment

When leasing equipment, it is important that you know significant business information of the lessor, if there are any active or pending trial, and what the mode of payment is. Lessor information includes corporate partnerships and affiliations, public filings, financial statements, credit history, payment history, and business summary. This will ensure the legitimacy and stability of lessor’s business, if not done systematically the renting will bring more bad than good. Pending litigations are primarily significant so to weigh how compliant the lessor is - this will lessen, if not eliminate - the probability of claim. System of payment is equally vital, too much paperwork is stressful whilst no documentation at all is risky.

Typical documents needed when leasing equipment includes the following:
1. Lease application form (from lessor)
2. Business registration documents
3. Financial statement/data

Typical points to review before signing leasing contract:
1. Monthly payments and fixed-rate APR
2. Insurance policy
3. Added fees (late payments, etc)
4. Extraneous charges (maintenance, repairs, legal fees, etc)
5. Duration of lease contract
6. Renewal option
7. Purchase option

Choosing your Lessor

One major concern of lesee is how to end up choosing the best lessor. What should you ask the leasing source? Well, we list some points to come up with better judgment.
1. Who is the lessor?
2. How long does the leasing company been in business? Basically, it is desirable if the company has been active for a long time now, keeping in mind that there are no active litigation against them.
3. What is the brand and the year of production of equipment? Is it fair than purchasing a brand new model?
4. Are there any option after the leasing period has expired? Is purchasing an option, or will leasing just be extended over a good period of time?
5. Is training for use of equipment free or at what cost is added to train employees?
6. Who is in charge of maintenance and repairs? Its cost?
7. If there are accidents, who would be in charge of insurance?
8. How flexible is the finance terms?
9. Are terms and conditions clear during until the end of the leasing period?

In the end, there are tons to think through before making a decision if purchasing or leasing is the best option for not just the company but for the employees who are in charge of operation of said equipment or machines.

Sal-Tech Easy Packaging offers machines for lease and even sells second hand machines that are in good condition. This is to support startup businesses and small ones without degrading quality and quantity of warehouse/production output.

For more details in leasing or purchasing equipment and machines, feel free to buzz us a message and we’re happy to lend a hand so you could come with the best solution for your business. Our customer support team can be reached at Should you need further details on what we do and what we offer, feel free to visit our webshop and browse.