The useful question is not just “what is the monthly payment?” It is whether the equipment will be available when work needs it, what it will cost across its expected use, who carries maintenance/downtime risk and what the commitment does to cash during quieter periods.
Compare the same use case
Define the equipment, expected hours/jobs, programme need, operator/transport/storage, maintenance, insurance and likely resale/return assumption. Then compare purchase, lease/hire and subcontract/supplier alternatives on the same expected use period.
Questions to document
- Is utilisation high and predictable enough to support ownership?
- What happens if the programme changes or the equipment is off-hire/down?
- What cash deposit, servicing, repairs, consumables and insurance are excluded from the headline figure?
- Are there contract, mileage/hour, damage or early-return conditions?
- Can the job price recover the equipment cost without assuming every future job uses it?
Tax/accounting treatment can matter, but it is not a shortcut to a decision. Obtain suitable advice using the actual agreement and business facts before relying on a claimed relief or treatment.
A same-period comparison
For example, compare a £2,000 purchase with a lease requiring a £300 deposit and 24 payments of £85. Over two years, list the £2,340 lease payments plus any servicing, insurance, return conditions and likely resale value alongside the purchase case. This is an illustration, not a tax treatment.
Related FoxSums resources
- 13-Week Cash-Flow Forecast
- Why Small Businesses Need More Than Year-End Accounts
- How to Read Monthly Management Accounts
Next step
Compare the total committed cash and practical use of each option over the same period before deciding.
Important
General information only. Check the facts and current official guidance for the business’s circumstances.
Sources and review
- Evidence check date: 2 November 2026.
- FoxSums operational guidance. This resource does not make a tax, legal or regulatory determination.