When you move to a new space, it can be tempting to go shopping to furnish your entire office. Before buying, especially if you have little money, you can think of a different option: rent your furniture.
When to buy
Buying your furniture can be a benefit for your business. For example, there are tax incentives associated with investing in equipment and furniture.
And he plans to be in his new location for several years, then buying his furniture probably makes more sense. After all, you can rent furniture for years and never own it, and you may end up spending more than you would have if you had originally purchased it.
Advice: always seek the advice of your trusted financial advisor
when considering major purchases.
When to lease
Leasing may be a good idea if your work area is temporary or if you have especially limited capital. Unlike the purchase of furniture, there is often a small or no down payment on the leased furniture.
- If you have a flexible budget or there are tax incentives that make the purchase feasible, you may want to buy or perhaps finance.
- In the long term, you will probably pay more for rent and you will not have anything after spending that money.
- If you are unsure about your location or need more cash available, you should consider leasing until you feel more stable.
However, each situation is unique. This is something that you should talk to your accountant or other fiscal or financial advisor.