Paying interest may not seem like good stewardship to most churches—at least not on smaller items such as equipment and furniture. Most congregations budget for these expenses and buy things such as chairs, tables and pews outright. But there are advantages to leasing that some congregations find fit their needs.

Most companies that offer a leasing option for furniture offer a lease-to-own plan. And this is appealing to churches that find themselves in need of both cash and chairs.

"Leasing reduces cash outlay for improved cash flow," said Andrea Ross, vice president of sales for Adirondack Direct. She also said churches may be better off financially if they lease furniture and equipment for the start up of a day care center or other related operation where start-up costs exceed projected revenue.

Adirondack works with a third party leasing company to tailor payment options to the needs of the individual church.

Buying something sooner than later may also be a better choice than waiting on the money to come in, because postponing a purchase will increase the price due to inflation, according to Ross. "Furniture prices are not going to go down in the near future," she said.

Leasing furniture can also be a first step in helping a congregation establish credit, according to Joe Dean, vice president of finance and administration at Church Plaza, a products and services provider to America’s churches.

"If we can help them get approved, we’re benefiting them," Dean said about the leasing options Church Plaza offers for chairs, tables and other church furnishings.

The majority of financing at Church Plaza is for churches that don’t have the funds to pay for what they need, according to Dean. "If they’re trying to acquire seating to allow their church to grow, it isn’t necessarily a bad use of their resources [to lease]," he said.

But Dean cautions thriving and growing churches against leasing. "This isn’t always the way for them to go because they can always do a fundraiser. If their members have the capacity to give more they may not need to [lease]."

Ross said a small number of Adirondack’s customers opt to lease, about 5 to 10 percent, and they include both small and large congregations. Whether leasing a small purchase or buying in large volume for a substantial discount, Ross said the company is interested on the best plan for each church. "Adirondack’s sales specialists work with churches to help them determine the option that best fits their needs," Ross said.

A few caveats for churches interested in leasing, whether it is for credit, growth, or simply convenience, churches that opt to lease should know that two to five years is typical for a lease term. Dean also recommends churches shop around. Sometimes a bank loan may offer lower interest than the leasing contract. Churches should look for the option that makes the best financial sense.

Once in a lease, however, Dean cautions churches against paying it off early. Unlike most bank loans, an early payoff on a lease may include the interest that would otherwise accrue during the entire life of the lease. If a congregation is planning to pay the lease off in a few months anyway, then leasing may not be the best bargain. Even if there is no penalty for paying the lease off early, there is usually no benefit. Whatever payment plan a church chooses, Dean also recommends churches to be cautious of large, upfront fees and pre-payment penalties.

Often it makes more sense for a church to buy furnishings outright. Integrity Furniture owner and president, Drew Coleman, recommends budgeting for furniture. His small company does not offer payment plans or leasing. But he said in more than 20 years of selling to churches small and large, leasing has never been an issue.

"I work with every size church, with orders up to $50,000 and $60,000," Coleman said. Most churches, including his own congregation where he serves as chair of the board of deacons, simply take money from the budget for furniture.

That is the best way to stretch the offering dollars, according to Coleman. He said it makes more sense for churches to finance larger ticketed items rather than furniture.

"Churches typically want to avoid paying interest on smaller things such as chairs and tables," he said.

Ross said the decision is different for each church. "Leasing versus purchase depends on the volume of furniture you want to purchase and your financial needs," she said.

And whether furnishings are bought-and-paid-for or leased-to-own, there is no doubt about the return on the investment for a church seeking not only to give people a place to sit, but to make disciples of them as well.