For many businesses looking to expand or replace their computer systems, they want to know the advantages and disadvantages of leasing computer equipment. We explain here.
With this rapid growth, it is quite easy for your computer equipment to become antiquated much more quickly than in years past. As Moore’s Law states: computing power doubles 24 months – so if you have computer equipment older than 18 months, you’ll already out of date.
Additionally, if you then begin to factor in the rate of depreciation of computer equipment, then you will see how startup businesses, especially those that rely on cutting-edge computer technology, find it very difficult to keep up with all of the technology advances and changes.
For example, if your business spends $6,500 on a piece of computer equipment, that piece of computer equipment will depreciate at around 14 percent per year, which means that in three years, you will be stuck with a piece of computer equipment that will worth roughly half as much as it was when you first purchased it.
It’s for that reason that many smart business owners decide to lease their equipment instead of purchasing it outright.
There are multiple benefits to leasing your computer technology, especially if your company’s finances do not allow for you to purchase the computer equipment that you need in cash, or using cash draining down payments. When you lease your computer equipment, you and the lending company will agree upon your terms that fit you and your business’ maintenance and financial needs.
With that said, today we are going to be looking at the advantages and disadvantages of leasing computer equipment.
The Advantages and Disadvantages of Leasing Computer Equipment
If you buy any piece of equipment you’ll need to set aside a certain amount of money in your budget to account for any type of repairs that may be needed for your computer equipment. This budgetary obligation is very important if you are looking to keep your equipment in the best working condition possible.
While this may a good option if you are only using a couple pieces of computer equipment, but as your business grows, upkeep on multiple pieces of equipment can cost you a lot more money than you would like it to, especially if it requires you to hire maintenance workers or an IT maintenance staff.
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If you lease this equipment that you need, the leasing company will not only provide you with high quality computer maintenance services, but it will also provide technical support 24 hours a day and 7 days a week. The exact terms of what you need and what you are looking for will be laid out in your initial lease contract negotiation. This is very beneficial because it will save you a lot of time, effort, and most importantly, it will save you a lot of money.
In general, a computer manufacturer will upgrade their product or program once every two or three years. While the older versions of the computer technology may still work just fine, upgraded products and programs will give you much more efficient functions, and a better overall result.
If your business relies upon having the latest equipment, purchasing the new equipment in full can turn out to be quite expensive, especially if money is tight. By not staying up to date, your business can suffer immensely, and can often result in you falling behind the competition.
When you lease and finance computer equipment, you are taking out an insurance policy protecting you from using computer technology that’s obsolete. Your leasing company can provide you with the most up to date, high quality leasing options. When the lease on your computer tech expires, the leasing company will replace it with the most up to date version of that equipment.
When you lease computer equipment, the financial payments that you make on the lease are essentially considered to be a “business expense” on your tax forms. This is very important because the use tax benefits can reduce the net overall cost of your lease as well as your tax burden at tax time. In addition to that, the lease agreement will allow for a lot more flexibility as well as a simplified repayment process in comparison to loans that you would get from a financial institution.
When you lease your computer equipment, you’ll have low monthly installments that can be extended over a longer period of time, lowering your overall monthly expenses and allowing you to better manage your cash flow.
As a busy business owner, your focus is on growing your business while reducing expenses. With equipment leasing and especially when you leasing computer equipment, you’ll save money at tax time as well as conserve your capital. Capital that can be spent on other important business ventures like hiring additional staff, advertising signage.
Security of Sensitive Information
This is one of the most important advantages to leasing your equipment. Chances are you have a lot sensitive and private information stored in your servers on your computer workstations. When you lease your computer equipment, not only will the constant upgrades keep you and your private information safe, but the data will be seamlessly transferred to the new piece of equipment. This kind of data management service is a great service that can potentially be offered by the leasing company. If you own all your computer equipment outright, this task will be left to you.
So when looking at the advantages and disadvantages of leasing computer equipment, the advantages far outweigh the disadvantages.
LeaseQ – For All of Your Computer Equipment Leasing
If you are in the market for fast, easy, and free computer equipment financing, then you should look no further than LeaseQ. LeaseQ’s elegant and leasing platform gives you a rate quote INSTANTLY.
This short video explains how it all works:
Other leasing sites offer visitors a “lease quote calculator” whose calculations in reality have little relevance to your business’ daily or monthly operations or your company’s credit score. LeaseQ’s One touch Platform gives you actual quotes with the best financing options for any piece of computer equipment that you need. This is one of the main reasons why LeaseQ is continuing to grow in popularity for companies looking to lease their computer equipment.
Additionally, LeaseQ has joined forces with the top financing companies in the meeting marketplace to make sure that they are offering you the best and most competitive lending rates across the board. So if you want an INSTANT quote, multiple choices on payment plans, and a pre-qualified lease on your business’ computer equipment needs, then you should look no further than LeaseQ.
Visit the LeaseQ website by CLICKING HERE, or give LeaseQ a call at 1-888-688-4519.