When you make
the decision to buy any piece of equipment for your office, you need to think
about the best option that will suit your needs and your budget. Apart from
choosing the equipment’s physical functionalities, you also need to decide
where to buy it and how to pay for it. If you do not have adequate cash to get
exactly what you need, you can choose the leasing option for your office
equipment. Many businesses are opting to lease equipment in order to own
equipment that they would not otherwise afford.
The truth is
that with the constant improvements in technology, most people know that they
will want to upgrade their current equipment regularly. Buying new equipment
every year or two can be very expensive. Fortunately, you can get round this
problem by leasing instead of buying. This means that instead of spending
several thousand dollars on equipment that you might want to upgrade the year
after next, you can lease instead of buy the equipment. Following are some
advantages of leasing office equipment.
Benefit from low costs
The most obvious
benefit of equipment leasing is the short term low cost. When you lease the
equipment, you do not pay the full upfront payments. The payments that you make
over time are fixed and regular, which makes budgeting convenient and easier to
Better access to financing options
When you decide
to get financing for your new office equipment, you will find it easier to get
financing for leasing than getting a loan for buying equipment. In most cases,
leases for equipment are not bank loans and you can free up your credit to take
care of other business needs.
Keep up with technology
computers, printers and other office items tend to be outdated very quickly.
With the introduction of new technology every year or two, owning equipment today
means that it will soon be outdated tomorrow. When you choose to lease the
equipment, you do not have to be stuck with old models or outdated technology.
You can get upgrades when the lease expires, hence getting rid of the obsolete
Get tax savings
It is usually
possible to deduct lease payments as business expenses. This means that you can
benefit from the savings and you do not have to go though the tedious depreciation
calculations. And when the tax season comes, you will be getting cash back from
all the tax savings you stand to make.
In addition, it
is important to think beyond your current business needs. Thinking long term
will help you to make decisions that will benefit your business. When you think
about all the items that you have purchased over the years and are now
accumulating dust in your office storeroom, it is clear that leasing would have
been a better choice.
At the end of
the day, leasing is the smart option if you do not want to be stuck with stuff
that you will find it hard to get rid a few years down the road. That’s why it
is important to apply a cost-benefit analysis when making business purchases.
This is the best way to ensure that you do not invest in costly equipment that
will be outdated or worthless very soon.