Should you lease IT equipment or buy it outright? Starting a business can be extremely strenuous on your cash flow especially when you look at the cost of a printer or laptop. If there isn’t a printer shop nearby, it can make your startup really frustrating. It is important that you make some smart decisions that even if they lock you in for the long term, you will see great return on investment. Printer and Laptop rentals aren’t as expensive as you may think and may be more beneficial to you.
The question is it better to buy or lease your IT hardware such as printers, laptops or ups solutions is one that is asked over and over and can be a dilemma for any startup and there are definitely pro’s and con’s for either. Buying gives you more control over your IT assets and can allow faster purchasing and maintenance whilst Leasing keeps your hardware up to date, creates predictable expenses, and helps you keep pace with competitors.
Over the years, Fibre Boyz has fielded a number of questions about buying and leasing office automation equipment we have on offer and have helped organizations work through the pros and cons for their employees and business. In some cases, the path is clear, for some not so.
The advantages of buying IT equipment outright include:
- having full ownership of the IT or automation assets, which you can add to your balance sheet
- the ability to deduct or write off the value of the assets for tax purposes through wear and tear allowances
- the ability to use or alter the equipment as you wish, since you’re not tied into a contract or a leasing agreement
On the other hand, disadvantages to buying outright include:
- paying the full costs up front, which can cause cashflow pressures
- possibly having to source a loan to cover the costs
- having to maintain or repair the equipment yourself, which can be costly or impractical
- losing value over time – hardware depreciates quickly and may become obsolete after a few years, requiring a further investment
Pros and cons if you lease IT equipment and automation hardware
When you lease IT equipment, you are simply renting computer equipment for a monthly fee. You enter a contract with a leasing provider like those we partner with at Vox and, at the end of the agreed term, you typically either:
- give the equipment back
- extend the lease if you wish to keep using it
Depending on the leasing company, you may also agree to buy the assets at the end of the lease. When you lease IT equipment, you have several distinct benefits. For example:
- it allows you to use assets without actually owning them
- it doesn’t tie up your funds in an outright purchase
- it minimises maintenance costs, as the lender is typically responsible for any upkeep
- it is more flexible and makes it easier to upgrade your equipment
- it is considered an operating cost, so you can write it off against profits
Should I lease IT equipment for my business?
Flexibility and technology are the two biggest benefits when you lease IT equipment. Hardware leases help organizations more quickly bring on laptops with faster processors, advances in hard drives, better printing solutions, more battery storage, better displays, and more by ensuring equipment is never more than three years old. Not to mention that an organization’s monthly lease payment often stays the same after an upgrade, so leasing can be a great deal.
Still, some organizations skip leasing, thinking they don’t have the time for contract negotiations. When leasing hardware, there’s no need to spend time identifying appropriate lessors or going back and forth on terms. In most cases, leasing terms aren’t as one-sided or onerous as those for other contracts. Lease agreements rarely take more than 48 hours to complete, and even at the end of a quarter, we can often finalize this kind of lease in a day.
Most importantly, leasing allows IT to focus on employees’ technology needs and unleashing their productivity. More productive employees, working on the newest technology every few years, can grow revenue and efficiency for your organization.
Check out the great deals we have on printer rentals, laptop rentals and many more IT hardware for your business!
