One of the greatest obstacles for business owners ready to expand their businesses is finding the cash to upgrade and buy additional equipment. Sinking most of your hard-earned capital into much needed equipment can drop you into a bottomless money pit. Securing a bank loan is an alternative, but while you can use the bank's money for your purchases, you may be required to come up with the standard 20 percent down payment. In addition, bank loans tend to offer very little flexibility in term length and also may not be completely tax deductible. Before you decide to ask your banker for a loan, consider an option that keeps a lot of small businesses moving forward. This option would be leasing.

According to the U.S. Department of Commerce, 80 percent of U.S. companies, lease some if not all of their equipment. Leasing your equipment avoids obsolescence and keeps you ahead of the game. Ultimately allowing yourself to have the newest equipment and technology to run and build your business. Always remember: If It Appreciates, Buy it. If it Depreciates, Lease it.