Benefits of Leasing IT Equipment & Computers
When you run a business, one of the most important decisions you have to make is to buy or lease your IT and computer equipment. Both buying and leasing IT equipment have their pros and cons, but more and more companies are beginning to rely on leasing computer equipment and other technology. Leasing hardware, software, licenses, warranties, and labour can all be easily done, unlike in the past when this was more of a challenge. It’s also scalable, so you can add equipment easily as your company and staff grow.
There are a number of benefits of leasing computer equipment and IT which make it a great option for many businesses. With tech being a constantly changing industry, leasing is key for freeing up cash, keeping your team happy, surpassing your competition, and staying up to date in your market.
Cash Benefits from Leasing
The cash benefits of leasing computer and IT equipment is the most appealing to most businesses. Leasing is an operation expense (OpEx), not a capital expense (CapEx). This means your lease payments are viewed as a simple monthly business expense, instead of a debt or liability. Importantly, this means your monthly costs are predictable and cash flow management is more straightforward.
There are a number of cash benefits of leasing IT equipment:
- You have less upfront costs
- You can create accurate monthly budgets because of the predictable expenses
- Monthly operational expenses look better in your books than large capital expenditures
- Tax benefits are available from leasing – consult with your accountant
- Receiving financing for leasing is easier and faster than taking out a loan to purchase equipment
- Stable profitability for stakeholders and shareholders
- Fewer, or no, maintenance costs
When coupled with other monthly IT services (such as ‘as a Service’ options), IT as a whole becomes a flat monthly investment, allowing for even easier planning and predictions.
Keep Your Equipment New, Efficient, and Modern
Because leases are short-term (often just a couple of years), you will never be stuck with old, outdated equipment like if you purchase equipment outright. When your lease expires, you can upgrade to the latest equipment available. PCs, for example, are typically not even worth 10% of their original value after three years of use. With leased equipment, you don’t have to worry about this liability and can simply upgrade to a newer model. You can align your lease period with your equipment lifecycle to maximize your investment and suit your exact business needs. This avoids costly downtime and maintenance!
Often, it is management or a board that chooses IT equipment, not the employees that will use it on a regular basis. This leads to tough negotiations when buying equipment, restrictions based on capital available, and often, the purchase of lower quality equipment. Companies that lease IT equipment will usually choose higher quality equipment because there is more cash flow available, improving the overall performance of the IT environment and employee productivity.
Keep Your Team Happy and Productive
Any business decision you make should benefit your employees. Leasing IT equipment is a decision that puts your team at an advantage. It’s simple – no employees are happy working on outdated or slow computers! By leasing equipment and keeping your computers and tech current, you provide your employees with fast, up-to-date, and modern equipment. They will be more productive, less frustrated, and happier to use the equipment.
Furthermore, your IT managers are able to more freely work and plan IT projects and usage because they know their budgets, workload, and equipment capacities. Management will be less frustrated and they won’t be held back by the red tape that comes with purchasing equipment outright.
Planning for the Future
Because leasing equipment gives you a fixed monthly cost that buying equipment does not provide, it’s easier for your board, management, and team to plan for the future because they know what the costs will be. Further benefits of leasing IT equipment in regards to planning within your company are:
- Encouraging your IT team to plan expenditures and projects
- Encouraging management, CEOs, and CFOs to plan yearly expenditures in advance
- Allowing better, more accurate negotiation with clients as they know your equipment will be modern and reliable
- Including onsite warranties and servicing for the life of the lease to avoid extra maintenance costs and planning around downtime
- Boosting your company’s credit through leasing contracts and improving your financial reputation
Outsource IT Can Help with Leasing IT Equipment!
The best part of leasing equipment is that you’re provided with a variety of options. You can choose exactly what you need to suit your individual business needs when, where, and how you need it.
This flexibility and scalability can seem overwhelming! That’s where Outsource IT comes in. Outsource IT will work with your preferred leasing company to help you find the best options for your company and staff. Don’t have a leasing company yet? We can recommend leasing companies we partner with and trust, who have proven themselves to be dedicated, reliable, modern, and transparent.
Call Outsource IT today and ask for our Leasing Consultant. We can help you understand how your company can reap the benefits of leasing IT equipment.
Contact us today!