Buy versus lease for your business

Depending on your situation, either buying or renting might make sense.

In business, you’re faced with a lot of choices. Inevitably there’ll come a day that you’ll need to decide whether to upgrade or expand your business which may mean purchasing new equipment. The question is – how to finance it? With buying and leasing options available, it can be hard to land on the one that’s right for you.

Here’s a quick overview to help you decide:


  • Finance as much as 100% of the purchase price.
  • Reduced payments.
  • Spread GST and PST over the term of the lease.
  • Potential tax advantages in expensing the entire rental.
  • Interest rates are usually fixed over the term of contract.
  • Typically, no additional collateral’s required.


  • There’s no residual value taken into account, so your payments may be higher.
  • Taxes are paid and financed up front.
  • You can expense depreciation and interest.
  • If you borrow, your interest rate can be fixed or floating and you may need collateral to secure the loan.

Each business is different and that’s why there’s no right or wrong choice when it comes to buying and leasing. An accountant can help analyze your situation and give you more details on the tax implications for each option so you can choose the best one for your business.

If you have questions about borrowing for your business, call our Contact Centre at 1.866.863.6237 and we’ll connect you with an advisor who can help make sense of it all.