This is an issue virtually all companies will encounter, from small firms in need of office furniture and automation equipment to large manufacturers dependent on heavy machinery. Each possibility has advantages. Leasing usually means that the vendor is responsible for issues like maintenance and repairs on equipment. It's also easier to upgrade when leasing, particularly if the product is technical in nature. Of course, there are costs associated with upgrades and leasing equipment and furniture means you cannot claim depreciation on them when calculating taxes.

Buying has definite tax advantages. At the same time, if equipment is outdated, the cost of replacing it can be expensive. However, that expense can be amortized, meaning it's spread out over time and reflected in the corporate balance sheet as an on-going budget item rather than a one-time expenditure. If purchased equipment breaks down, the cost of repairs falls to the owner, though you may have a service agreement with the seller. Even so, such an arrangement carries a price tag.