There is no doubt that computer equipment leasing is a suitable solution for almost every type of business but if your IT department is thinking of this option you need to manage, evaluate and plan.
Any financial expert will tell you that before you lease your computer equipment, you have to look at your business’s financial situation. No two businesses are alike so you can’t lease computer equipment simply because everybody else is doing it. You need to first analyze several financing options before you decide that you need to lease. Each financing option has its advantages and disadvantages. Since we are talking about computer equipment leasing, let’s take a look at some of the less obvious things that you should consider when evaluating a leasing program.
1. Involving Your Finance Department
It’s hard to consider hiring outside help but you need to get a financing expert to help you evaluate your lease. The terms and conditions of your equipment lease might be difficult to control and even manage so getting your finance team involved early on will lend legitimacy to the leasing process.
Another area of leasing where your finance department can help is with payment management. Have your finance people handle payments so that the IT department doesn’t have to. Not only does this reduce the risk of payments going missing, but also it will ensure everybody deals with areas they have specialized in.
Your finance department can streamline the whole leasing process because they can track your assets and account for your leased computer equipment.
2. If You Have A Small Business Go With Traditional Financing
If you are a small business owner, you likely have a small budget and a small IT staff. Leasing can sometimes be complicated and can be a little too demanding on resources. Payments are usually much more manageable if you go with traditional financing. This is because only a few financing accounts will be open; you will do things on a per-need and per-system basis. Examples of traditional financing include:
- Company credit card
- Retailer financing
- Original equipment manufacturer (O.E.M) financing
3. Have A Firm End-Of-Life Buy-out Policy
Computer equipment depreciates very fast given the ever-changing world of technology. This makes end-of-life buyouts a very bad idea because computer equipment doesn’t ordinarily give you good value so keeping it beyond the life of the lease agreement does not make sense.
Make sure that you create policies and guidelines that allow your IT department to offload any data on the computers and prepare to return them on time. The following are some examples of end-of-lease issues that come with computer equipment leasing.
- Not taking all your data off the computer systems
- Returning dirty computers. Some equipment leasing companies will charge you extra if they have to clean up very dirty computers.
- Not returning all computer accessories. Make sure that you return all mice, cables, power supplies etc., as this could cost you extra at the end of the lease if they are not returned.
- Failing to understand the return requirements. Does the equipment leasing company expect you to pack and ship the equipment to them or do they need you to pack the equipment in the original boxes they were delivered in? Make sure you have a plan in place that is well outlined before return day.
4. Computer Equipment Leasing Will Relieve You The Burden Of Disposal
While it is easy for many business owners to try as much as possible to be environmentally friendly, it wouldn’t hurt to let someone else do it for them. Computer equipment leasing can relieve the burden of having to dispose it because you will eventually return it to the leasing company at the end of the lease period. This of course is only possible if you sign a lease agreement that allows you to return the equipment.
5. Should You Purchase Computer Equipment At the End Of The Lease?
The price of technology tends to go down rapidly and most likely, your computer equipment will be obsolete by the time your lease period ends. So the answer is NO, don’t buy the equipment at the end of the lease period because you can upgrade your computers and get better ones.
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