Leasing vs financing: Choosing the right path for your equipment

When it comes to acquiring business-critical equipment, organisations often face a key decision: to lease or to finance? While both options offer distinct advantages, understanding the differences can help businesses make smarter, more strategic choices.

At Quadrent, our Vendor Finance solution is designed to give businesses flexibility, transparency, and control, whether they choose to lease or finance.

Read on to find out the unique advantages of both options.

Leasing: Predictability and flexibility

Leasing equipment offers a streamlined, cost-effective way to access the tools your business needs without the burden of ownership. One of the biggest advantages? Full monthly payments are tax deductible, making it easier to manage cash flow and reduce taxable income.

At the end of the lease term, businesses have several options:

• Hand back the asset and avoid the hassle of selling or disposing of ageing equipment
• Purchase the asset for its residual value if it still holds operational value
• Continue leasing under a new arrangement, keeping your costs aligned with usage

This flexibility makes leasing ideal for businesses that want to stay agile. It allows them to scale their equipment usage to meet project demands, avoid large upfront costs, and keep their technology or equipment up to date.

Understanding the differences between leasing and financing your equipment means extracting the
most value from your asset based on your specific needs.

Financing: Ownership and tax benefits

Financing through Quadrent’s Vendor Finance solution gives businesses ownership of their asset from day one. This can be a strategic move for equipment that will be used long-term or has strong resale value.

With financing, businesses can:

• Claim GST on their Business Activity Statement (BAS) for the period in which the asset was purchased
• Claim depreciation on the asset over its useful life
• Claim the interest portion of each payment as a tax deduction. Depending on the rate, the interest portion is approximately one-third of each payment, diminishing to almost zero towards the end of the term

While financing may involve higher upfront costs and responsibility for maintenance, it can be more cost-effective over time for assets that retain value or are core to your operations over a long period of time.

Choosing the right option for you

The choice between leasing and financing depends on your business goals, cash flow, and how you plan to use the equipment. Leasing offers flexibility and simplicity, while financing provides ownership and long-term tax benefits.

Our Vendor Finance solution is designed to support both paths, giving businesses the tools to make informed decisions and structure agreements that align with their operational and financial strategies.

Whether you're looking to lease or finance, our specialist team can help you unlock value, manage risk, and stay ahead. Find out more today.