The question of buying or leasing equipment is one filled with variables. Basically, you need to think of capital and cash flow as your oxygen bottle. You only have so much, and if you run out you die. Leasing allows you to purchase more equipment at a lower monthly payment, but often costs more in the long run than buying. Buying allows depreciation, but ties up capital. In my personal case, I have avoided debt like the plague in the startup of this business. That has meant foregoing the very best equipment, etc for the short term. It has, however, allowed me to firmly keep my overhead very low, which is essential. It really depends on your business plan. If you want to expand quickly, you will pretty much have to lease or get a loan, because earnings will lag behind your purchases. To stay on a cash basis, the growth rate will need to be more moderate.