When you start a business of your own and all the pieces seem to fall into place, it can be wise to look at the possibilities to lease some of the company´s equipment instead of investing. Sometimes it can be more profitable to lease machines and equipment instead of buying. The ownership of the equipment used in a business is often irrelevant. Neither bosses nor the people working in production cares about the ownership of the machines. The status of the equipment and the cost is what is truly interesting. Leasing equipment has a lot of advantages to owning it. Take IT equipment as an example, this is a genre that is developing quickly. By having the latest a company can keep up with other businesses in the branch and by leasing the equipment you don´t need to invest over and over when things get old, you just lease new ones.
No down payment
When you are investing in computers, cell phones or smart boards you need to put in a down payment. This will have to come from the company finances and means you will have company money tied up in the equipment. Since IT is changing so fast, this money is probably lost since there will be no second-hand value to the equipment. By leasing the equipment instead, you won´t need to put out a down payment, instead you pay a monthly lease. Deals are different, but the usual is to lease for 18, 24, or 36 months. When the lease expires you can renegotiate the deal or just expand or end it. You can ask for offers from other companies in the same branch to make the deal as profitable as possible.
If you make the decision to buy your IT equipment, you have to look at all possible suppliers. After having invested in the equipment it needs maintenance and repairs. This demands a lot from the company, both time and money. This can be overbearing for a small company, but also for a bigger one, both economically and having the competence. By leasing the equipment, you can skip this part by making the deal including support, service and repairs. A deal can also include upgrades, exchange and troubleshooting.
By leasing your equipment there are no surprises when it comes to costs surrounding the equipment. You have the exact amount for every month. This is directly affecting budgets in a positive way. Leasing is decreasing risks of unforeseen expenses. A careless employee bringing on a dangerous code through a suspicious email can result in a smaller catastrophe leading to large costs and loss of income. Leasing equipment keeps it up to date and the risk is therefor much smaller. This also creates a company that is attractive to employees. In nine out of ten cases, your own equipment is associated with high amounts for insurance which makes another saver in costs when leasing instead.
No matter what kind of equipment your company needs for the day to day production and work, it can be very profitable to look at how the costs could change by leasing instead of buying.