When your business next requires new equipment such as computers or other technology, how should you acquire it? The decision of whether to buy or lease IT equipment for your firm is one of the biggest factors to consider when setting up or refreshing your business. There are pros and cons to both options, so let’s quickly take a look at some of the key factors to consider when deciding between purchasing and leasing business equipment.
Price is likely to be a key consideration when deciding whether to buy or lease your equipment, so consider carefully the costs involved in both options. The initial outlay of purchasing could prove too costly when payment is required up-front, just as leasing could work out more expensive in the long-run – but the latter will allow you to spread the cost over a more manageable timeframe.
Asset leasing provides a handy way of keeping track of your monthly expenditure on tech and equipment, as this will take the form of a pre-determined monthly cost. Conversely, purchasing your equipment means you are also responsible for any required updates or upgrades, which could prove extremely costly over the lifetime of your business.
Leasing allows you to keep your technology up-to-date without having to constantly purchase new machines. This allows you to pass the financial burden associated with upgrading on to your leasing company – helping you to get on with the important task of running your business. Buying equipment is initially easier than leasing, however – allowing you to perform a needs assessment and purchase the goods there and then instead of jumping through whatever hoops your lease company requires.
Considering Your Options
There are a variety of different leasing options available to you if you choose to acquire your equipment through leasing, and it’s important to ensure you make any leasing arrangement work to your specific needs and ensure that you understand clearly what will happen when your leasing contract comes to an end. The options for a leasing contract include:
- Finance Leasing
- Hire Purchase
- Sales & Lease Back
- Operating Lease
Always read through any leasing literature carefully and discuss with an experienced advisor. The negotiation required to ensure your leasing arrangement suits your needs is a crucial stage of any leasing agreement process, but can lead to a fruitful partnership which sees you stay well ahead of the competition. Get in touch with us to find out more about our asset leasing services.