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When to Lease or Rent
Office Furniture - and when to Buy
by Candice Pardue
About Office Furniture
If you're just starting out in your
business, you might be low on finances, at least for the
first six months to one year. As with any business,
uncertainties for the future can cause you to pause before
purchasing large items such as office furniture.
During this critical time, renting or leasing your office
furniture can be a smart solution.
Three Ways Renting or Leasing can be
Beneficial
There are several advantages to
renting or leasing furniture that can help ease your mind if
this is an option for you.
1. Try Before You Buy
Renting versus owning the furniture allows you some time to
try out a certain type of furniture before you make a
purchase. Most rental agreements are short term, and
no commitment is made to purchase the furniture.
If possible, choose rental furniture that's similar to the
furniture you would like to purchase in the future.
You'll know after a short while whether or not you made the
right choice.
Leasing differs from renting in that it requires more of a
commitment, either to a longer term of payments or a promise
to purchase after the leasing period ends. Again,
leasing is also a great way to test the waters before
jumping in with both feet.
2. Short Term Usage
If you plan to have your office open for only a short period
of time, renting or leasing would be a wise choice.
For example, some accountants open small offices in various
locations ONLY during the busy tax season. Once the
season has ended, they close until the next season
arrives. It would be too much trouble and expense to
own furniture for a temporary location when you consider the
cost of storing the furniture.
Other reasons you might need short term usage would be for
special events, meetings or presentations. In these
cases, you might need the furniture for only a day or a few
days.
3. Prevent Further Debt
Many new businesses have their start in debt. Adding a
furniture bill on can be too risky at the time. In
this case, you can rent or lease the furniture until you
have the cash saved for a purchase. Even though
renting seems wasteful, it will save you from a bad debt
later if your business closes for some reason.
When to Buy Your Office Furniture
Purchasing office furniture 
is a wise decision if you plan to use it for a long time to
come, and have the ability to pay cash for it. If you
must go in debt, you need to determine how much debt you
already owe for the business, and whether or not it's worth
the risk.
The advantages of purchasing your office furniture are
obvious:
1. You Own the Office Furniture
The first advantage is the fact that you own the
furniture. It's yours to keep, move, sell, etc.
Paying cash frees you from high interest rates and a monthly
payment.
2. No Damage Worries
When you own the furniture, you're not continually worried
about the condition of the furniture. You do want to
keep your own furniture looking nice, but accidents can and
will happen. It's much better when they happen to your
own things than to someone else's furniture!
As you can see, renting or leasing can be an option in some
circumstances, but owning is always the best route whenever
possible. Make this decision based on your current
business needs and financial situation.
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