- October 2018
A business owners guide to leasing IT equipment
Much the same as leasing a car, which let’s face it, nowadays seems to be the norm, your business equipment can also be leased, and there are many benefits to doing this.
The IT environment and the technology that businesses regularly invest in is changing all the time, and advancements in our sector are being made daily. This does two things. Firstly, it drives up the demand for businesses to have industry-leading technology, to stay ahead of the completion. Secondly, it increases depreciation and lowers the value of technology over time. If you think about it, advancements in technology and vehicle engineering are what drive down the value of our cars, and the main reason why car leasing is so popular – why have a ten year old car, with the increasing level of unreliability and an imminent need for replacement, when you can allocate a set budget each month and have a newer car, better spec’d that’s far more reliable?
The same can be said for IT equipment. Your business is the most important asset, and its ability to run smoothly, to increase performance and to reduce the costs associated with downtime – which can be thousands, must be your priority. If you are running your business on legacy systems that don’t integrate well, that are starting to become unreliable, and maybe even starting to come to the end of their lifecycle – going into extended support or even no support, it’s highly likely that you’ll be starting to think about your options.
How to get started
Before you start to evaluate if buying or leasing is the right option for you, answer the questions below.
What is your monthly budget?
Leasing generally allows substantially lower monthly payments compared to purchasing, but the costs still need to be factored into any monthly cash flow to make sure that the commitments you’re about to make are affordable.
How long will the equipment be used for?
Generally, a lease is more appropriate for what is considered short-term usage – up to three years. If it’s likely you’ll have a need to replace the equipment after three years, a lease is going to be more cost-effective.
When will the equipment become outdated?
Technology needs to be replaced or upgraded every three-four years. With that in mind, leasing may well provide the most cost-effective solution.
How can we help?
We offer Technology as a Service and provide IT equipment on leased agreements. In fact, the benefits will often outweigh other options and therefore it’s a great solution that many of our clients will opt for.
What’s more, in many cases, we are able to provide interest-free credit, for the full 36-month agreement. The costs can be spread across the duration of the contract, meaning you’ll pay no more in month one than you would throughout the agreement.
Contact us to find out how leasing could benefit your own business.