There’s also the risk of committing to fixed payments that the business may struggle to meet if cash flow becomes tight. Businesses should review their financial position before committing to any repayment plan.
In leasing scenarios, companies may not own the equipment outright, which can limit flexibility. Some leases include restrictions on modifications or require the equipment to be returned in a specific condition.
Finally, businesses should be careful not to over-finance. It can be tempting to bundle in accessories, software, or other upgrades that aren’t strictly necessary, leading to higher monthly costs.