The next time your business needs new computers, should you buy it or lease it?
Leasing: The Benefits
Leasing keeps your equipment up-to-date. Computers and other tech equipment eventually become obsolete. With a lease, you pass the financial burden of obsolescence to the equipment leasing company. For example, let's say you have a two-year lease on a machine. After that lease expires, you're free to lease whatever equipment is newer, faster and cheaper. (This is also a reason some people prefer to lease their cars.) In fact, 65 percent of respondents to a 2005 Equipment Leasing Association survey said the ability to have the latest equipment was leasing's number-one perceived benefit.
You'll have predictable monthly expenses. With a lease, you have a pre-determined monthly line item, which can help you budget more effectively.
You pay nothing up front. Many small businesses struggle with cash flow and must keep their coffers as full as possible. Because leases do not require a down payment, you can acquire new equipment without tapping much-needed funds.
You're able to more easily keep up with your competitors. Leasing can enable your small business to acquire sophisticated technology, that might be otherwise unaffordable.
The result: You're better able to keep up with your larger competitors without draining your financial resources.