When examining computer leasing vs buying, what’s the better choice for your business?
Technology is something that’s been making huge strides in the past few decades, advancing to the point where a device that can do all sorts of work for you can fit in your pocket. Advances are so constant, however, that some businesses get put at a disadvantage because they fall far behind on the technological curve and this is very commonly shown on anything computer related.
New computer advancement come out so fast, that falling behind is guaranteed to happen within the year; from new programs to new bits of technology that get added on to the next new computer. They accomplish new things with storage, graphics, speed, and more, and all of it is designed to make using the computer much better for the user.
All sorts of businesses use computers, whether it’s restaurants to track customers or fitness centers to scan in members or just businesses that need a computer to do their books on, and, for many of these companies, keeping these computers up to date is a necessity for their business overall. Many businesses even need computers in bulk, meaning that the situation gets more complicated than simply paying a few hundred dollars for a computer.
Whatever case you find yourself in, if you need a computer or multiple computers for your business, examining computer leasing vs buying is a wise choice.
Upsides and Downsides of Purchasing Laptops
Purchasing is usually a good move for smaller bulk because you can just pay up front and have the computer; even if it breaks in a few years, you didn’t blow through all of your startup funds just to purchase it, and replacing it or getting an upgraded one in a couple years is doable.
However, if the computers are needed in a higher bulk or they’re more vital to your business than just handling some paperwork or doing a few books, purchasing equipment becomes a huge downside.
Even though you can claim the hardware as an asset and get some money for it, you still need to pay most of the bill, and if you can’t you’ll be stuck with a loan with an interest rate, meaning you start off owing money and need to pay more to get out of it.
Computers do break, and a few years is not much time if you spent a good deal of money for all of them, so if you purchase them in bulk and they all start breaking within a few years, you spent a good deal of your startup funds just to have to pay the same amount a few years down the road. Plus, if you got a loan to pay for them, it only puts you more in the hole as far as money you owe.
Computer Leasing vs Buying: When is Leasing the Better Option?
The main downsides of all equipment is that it will need repair over time, it will break to the point where replacement is the better option, and it will become outdated at some point. However, with computers, these are all a guarantee within a short period of time, as technological speed demands they advance computer technology quickly.
In addition, technology has become so inexpensive that it doesn’t take long for it to be cheaper to just re-purchase the equipment versus repair it, only for it to break down again. These downsides can be contradicted if your business gets a good lease, a contract that loans equipment to you for a set period of time in exchange for a flat monthly rate.
With leasing, your company can get any hardware repaired or replaced if needed as outlined in the lease, and you won’t have to pay ridiculously high fees to get it. In addition, you can get upgrades on the equipment, and once the lease is up you can get an upgrade and continue the lease or purchase the equipment at a haggled price.
Leasing is designed so you can spend less money on your equipment and still get good hardware while starting your business; plus, you don’t have to worry about your equipment breaking or technological advances giving your competition an edge. To find out more about how computer leasing vs buying works, click here.