What does a service like leasing do for a business financially? Is it better to be leasing computers instead of buying them?
Computer technology has become exponentially better in the past few decades, going from technology that takes up a room to becoming a pillar in the foundation of society. Computer technology has gotten smaller, more advanced, and more efficient in providing people with a huge variety of services.
You can get some fairly advanced technology through your smart phone or your tablet, and some of the best, quickest technology is found through standard computers because of their capabilities. So many homes have some kind of computer technology, and running a business is nearly impossible without at least one computer.
In fact, some businesses completely depend on their computers in order to be successful, as they provide the most ideal service through their computer technology. Getting this computer technology can be another matter entirely, especially when you need quite a few computers to run your business effectively.
However, some businesses determine that it is better to go about leasing computers instead of buying them, but what are the factors in leasing and purchasing computer equipment for a business?
The Process of Purchasing a Computer
With purchasing, there are quite a few different factors, and the best way to look at purchasing is thinking about the process of a purchase in your own home. If you decide to buy a laptop or personal computer, you’ll spend quite a bit of money initially, maybe as low as $500 or as high as a few thousand.
However, that’s the one purchase you make, and then you have the computer for your own use for quite a bit of time. Many people who purchase computers use them on a daily basis, for work or for pleasure, for a few years until the time inevitably comes for replacement.
Eventually, your computer will start to slow down and deal with bugs, and within five years the time will come for you to get a new computer.
You could replace parts on your computer either yourself if you’re a professional or pay quite a bit to get repaired, but repairs are always very temporary and only add a little bit more life to the computer. You’re going to have to make that large purchase again very soon to get the computer again.
Computer Equipment for a Business
When comparing a home purchase to a business purchase, it’s all about quantity and quality with the equipment, but the numbers breakdown can also be a pretty important factor.
Get an Instant Quote on Your Equipment Lease, Free
The computer equipment is expensive but manageable when you pay for one computer every five years; however, if you need ten or twenty then you’re dealing with quite a bit of spending. It’s tough to pay for everything you need for a business without having to deal with buying twenty well-running computers once every few years.
There are advantages to purchasing, like the ability to claim it as a business asset and get some funding for it. However, purchasing always depends on what you need versus what you can afford, and with expensive equipment that doesn’t last long purchasing isn’t always very viable.
There aren’t many alternatives there, even with a bank loan, where the interest rate can make life much more difficult for you.
Should you be Leasing Computers Instead of Buying them?
Many business owners want to know whether or not they should be leasing computers instead of buying them, and it always depends on what they’re getting.
Oftentimes, purchasing can be an easy option and you get the benefit of ownership, but maintaining the responsibility of owning equipment can be difficult.
With an equipment lease, you pay a low flat monthly rate to get all of the equipment you need loaned out to your business, which is much more manageable versus paying for twenty computers or dealing with a loan interest rate.
Plus, leasing means you get the benefit of keeping equipment in your business during the contract period no matter what.
That means if your equipment breaks down, it gets repaired or replaced and put into your business, so you don’t have to worry about the responsibility of dealing with broken equipment. To learn more about the different benefits when you’re leasing computers instead of buying them, click here.