Making Cents of Pallet Rack Purchases with Smart Leasing & Financing

Pallet Rack Storage Solutions - Apex Companies

Why buy when you can lease? That phrase is catchy and popular in today’s culture for everything from automobiles to home appliances. However, it also makes a lot of sense for businesses to consider all available purchasing options for significant capital expenditures, such as material handling and pallet rack systems. Let’s explore some payment options that really pay off.


Purchasing vs. Leasing

The first question is whether to buy or lease?

Buying storage racking systems outright guarantees ownership without additional interest and loan expenses. The system is installed and working for you from day one. If the long-term needs of your storage racking and order processing systems are unlikely to change, this is a valuable solution to consider.

Pallet Rack Storage Solutions - Apex Companies

Benefits of Purchasing

  • Own rack system outright
  • Save interest costs and financing fees

If buying the system outright isn’t a viable option, you may be in luck because it can be more cost effective for your business to finance a large purchase like pallet rack. You still benefit from acquiring and using the system quickly without spending a large amount of capital upfront.

Benefits of Financing

  • Preserve working capital for business expenses that are not traditionally financed, such as inventory, utility and labor costs, rent, and marketing expenses.
  • Gain productive use of your equipment right away.
  • Budget monthly payments for a set amount for easier planning.
  • Receive tax advantages* for newly purchased assets.

Now, if your business relies on short-term or fluid solutions or equipment that employs technology, leasing vs. purchasing may be the right decision.

Again, you get the benefit of using your new racking system right away, but you can more effectively plan expected upgrades and replacements to avoid obsolescence issues.

Benefits of Leasing

  • Cost-effective for short-term equipment uses.
  • Save on high up-front costs.
  • Return the equipment at the end of the lease.
  • Realize tax advantages* for rental expenses.
  • Benefit from using updated technology and solutions with scheduled, planned updates and replacement equipment.
  • Lease flexibility affords a purchase option at the end of the term should business needs change (i.e., facility expansion).

Smart Borrowing

Pallet Rack Storage Solutions - Apex Companies

Leasing Options

  • FMV Lease
  • Capital lease

FMV Lease – a fair-market-value lease is a contract where the lessee uses the equipment for a set period while paying the seller a fixed monthly rate. At the end of the lease, the lessee can choose to purchase the equipment for fair market value (determined at lease end), return the equipment, or upgrade to new equipment.

Capital Lease – a capital lease is a lease to own agreement and is treated differently than an FMV lease on a business’s balance sheet. The equipment is considered an asset, and as such, can be depreciated. However, the lease is regarded as debt. The lessee uses the equipment and pays for it on a fixed, monthly rate until paid in full, and the lessee then owns it outright. Capital leases are best used for long-term purchases, ideally where equipment will not be subject to obsolescence.


Apex Cos. offers financing and leasing for pallet rack and material handling systems as well as vehicles and equipment. We offer 100% financing for new and used equipment (be sure to check out our pre-owned certified rack equipment and top-quality warehouse vehicles). 100% financing and lease options save you upfront costs allowing you to budget your capital in a way that works for your business needs.

Call Apex today to learn more about our leasing and finance-to-own options and to apply for fast approval. Choose from our flexible finance terms from 12 – 120 months.

* Subject to the advice of a tax advisor