Buying vs leasing screen printing equipment

Many growing screen printing shops are faced with the constant struggle of upgrading their equipment which often proves necessary in this industry. However for upcoming screen printing shops, one of the main decisions they need to make is whether to buy or lease their screen printing equipment. Buying screen printing equipment can be very costly, especially for new business. However owning your equipment does have its perks.

When buying equipment, this means your business will have fewer future expenses. If your company is starting with enough capital, it would be beneficial in the long run. However if your business does not have enough capital, leasing would be a better solution since the downpayment is a fraction of the cost of buying equipment.

You should also take note that this type of equipment, much like any technology nowadays, does need constant updates to keep up with the field. Buying equipment can sometimes leave your business with archaic equipment that can be a burden to your company. Leasing equipment does give your company more opportunity to upgrade, depending on the lease you obtained. Another point you need to reconsider is the resale value. When you buy your equipment, it provides you more control if you plan to resell your screen printing equipment in the future.

Whether owning or leasing equipment, there are some tax incentives for both. If you own screen printing equipment, Section 179 Deduction allows businesses to deduct the purchase price of a piece of equipment from their annual gross income. To qualify, the purchased equipment must be used to directly generate profit, used on an ongoing basis and have an impact on the business’ success. If you lease your screen printing equipment, the expense of the lease is 100 percent tax-deductible.