Lease or buy

A lease payment shows up fully on the profit-and-loss statement, whereas only the interest component of a financing payment shows up. So, if both monthly payments are equal, financing would be better for your bottom line.

However, if your business is profitable, you may reduce your taxes with a financed purchase, since current IRS Section 179 provisions allow for significant direct expensing of capital purchases (as opposed to depreciating over time).

Be sure to consult with your certified public accountant to help you make the best decision for cash and profit.