The most poorly made decision at SMEs
Buying machinery, vehicles, or equipment with your own capital is one of the most common mistakes made by growing companies. You tie up resources that could otherwise be generating returns.
What is financial leasing?
It's an arrangement in which an institution acquires the asset you need and grants you its use for an agreed term, in exchange for periodic payments. At the end of the contract, you can purchase it at residual value, renew the agreement, or return the asset.
When it makes sense to lease
When the asset has a limited useful life
Technology, delivery vehicles, and medical or computer equipment depreciate quickly. Leasing protects you from being stuck with obsolete assets.
When you need to preserve working capital
If you buy with your own cash, that money stops circulating. Leasing frees up that capital for inventory, payroll, or new opportunities.
When you want a tax deduction
Lease payments are deductible as an operating expense for ISR (Mexican income tax) purposes. A purchase generates depreciation spread over time, which is less tax-efficient in the short term.
When the use is temporary or seasonal
If you only need equipment for a single project or season, leasing is smarter than buying.
When it makes sense to buy
- The asset has a long useful life and doesn't become technologically obsolete
- You want to build equity and have sufficient cash flow
- The total accumulated cost of leasing significantly exceeds the purchase price
Questions to help you decide
- How long will I use this asset?
- Do I need that capital for other operations?
- What tax impact does each option have this year?
- Will the asset become obsolete in less than 5 years?