Noel Leeming Commercial

How to know when to lease and when to finance

Both financing and leasing are a simple and effective way to get the equipment and services your business needs now, enabling you to spread the cost of the asset over its economic life, without tying up your company’s cash flow.

The key difference between leasing and financing, is that at the end of the term, you either own the product you have financed (financing), or you don’t (leasing). 

Which one you choose will depend entirely on your individual situation, but generally the difference between the two are:


Leasing is great for fast depreciating assets that have a relatively short useful life. At the end of term there are a range of options so you can easily replace or upgrade.

Financing is suitable for goods that doesn’t need upgrading, or that won’t be obsolete in a short period of time, due to advancements in technology or changing business requirements.

Types of assets

Those that depreciate quickly, for example, technology

Those that retain their value over time.

Tax benefits

Check your eligibility for tax deductions as they can be treated as an operating expense.

Interest and depreciation can be claimed.

End of term options

Flexible options at the end of your contract allowing you to extend, or own.

Ownership transfers to you after the last payment is made.

As every business is different, and will require different financing and leasing options, we work with a range of providers that specialise in financing and leasing for different types of technology, equipment and protection. You can read more about our options on our finance and leasing page.

Our commercial team can help you uncover the best financing and leasing options available for your business.

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