The next time your business needs new computers or other technology, you might be left concerned about the price that is associated with such a significant purchase. Technology is always changing; so would it be wise for your business to lease the equipment instead?
Many businesses opt to pay cash up-front for technology-based equipment and IT services. However, technology changes as do your business needs, in addition IT hardware is likely to depreciate in value over time.
There are also a range of hidden costs associated with buying equipment outright, including installation of the equipment, the regular maintenance of the asset as well as the costs that occur when the equipment reaches its lifespan.
By leasing the necessary equipment, the ownership risk is transferred from the business owner to the lender. If any major issues occur with the equipment, it will be the owners who need to consider warranty and any associated costs.
In addition, leasing allows you the option to remain flexible with your technology options. Assuming you are not locked into a long term leasing contract, you have the option of regularly assessing your technology needs and making adjustments.
Leasing helps to maintain a positive cash flow, as your business will not be required to spend a significant amount on a purchase, rather smaller amounts throughout a period of time. Start-up companies or rapidly growing companies would benefit from this option,– this way money spent on leasing the computers becomes an operating expense.
Operator leases work by the lender paying for the customer’s required equipment. The customer then agrees to lease or rent the equipment for an agreed period of time, generally a period of a few years. Once the duration of the term has lapsed, the customer has several options available to them, as described below:
Described below are several useful tips to help ensure you get the most out of your IT lease.
Ultimately, the decision to either buy or lease your technology equipment will be based on your unique business. To learn more about opportunities for technology leasing and whether it will fit your unique business needs, contact Correct Solutions at +61 2 8831 8200 and talk to one of our technology and business experts.