Business & Asset Finance · Question Domain

My business needs equipment but I don't want debt — what are my options?

General advice only · AFSL 222640 · Global Mutual Funds Pty Ltd

The direct answer

You have more options than a loan: operating leases and rental (you use the asset without owning it), rent-to-own, buying second-hand outright, vendor or supplier finance, and staged purchasing from cash flow. Leasing can keep the asset off your balance sheet as debt in some structures, but it is still a financial commitment — compare total cost over the period you need the equipment.

What it depends on

The full answer depends on your specific circumstances. Here’s what matters.

How long you need it

Short-term or fast-obsolescing equipment (like technology) often suits leasing or rental. Long-life assets usually cost less to own.

Whether it generates revenue

Equipment that directly earns income can justify finance if the return exceeds the cost. Equipment that does not usually should not be financed long-term.

Your cash buffer

Paying cash can leave the business exposed if revenue dips. Preserving cash has real value.

The last 10%

What a qualified professional can add

The answer above covers the general position. Here’s where professional judgement — applied to YOUR specific situation — makes the difference.

Comparing the total cost of leasing, renting and buying over the useful life
Identifying tax treatment differences between structures
Negotiating with suppliers for payment terms

Questions to ask before you engage one

If you decide to engage a professional, these questions help you evaluate whether they’re right for your situation.

What is the total cost of this lease versus buying over the same period?

Who is responsible for maintenance and repairs?

What happens at the end of the term — return, upgrade or buy?

Can I exit early, and at what cost?

Your next step

Write down how long you need the equipment and how much revenue it will generate. Then get one lease quote and one purchase price and compare total cost.

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