Business benefits of Leasing versus buying technology

In today’s soft economic conditions, it’s more important than ever to justify your company’s IT expenditures.  The need to upgrade your technology often triggers many important decisions on how to finance this new technology.  Leasing is an excellent option to consider.  This article will explain the benefits of leasing versus purchasing IT equipment.

Technology Refresh:   With new technology comes the constant challenge of keeping up.   Leasing allows you to refresh your IT equipment on a planned, frequent basis.  This helps to eliminate a wide variation in older to newer technology, as no system in the datacenter will be much older than 36 months, the typical length of a technology lease.  Everyone benefits from this refresh, even the helpdesk as they will have a much narrower focus.

Leasing offers less up front capital:  IT purchases are expensive and require a great deal of working capital.  Leasing IT equipment means less upfront costs and stretches payments across many months.  This means more working capital for the company to focus on growth.  The right kind of lease may also make the balance sheet look substantially better to the shareholders.

Leasing offers flexible payment plans:  Many leases have negotiable terms and an option for a buyout at the end.   You still end up owning the IT equipment buy are paying for it over an extended period of time.  This can remove some of the purchase obstacles that were making the transaction less attractive.

Leasing is a common fact of life in many Companies; Nearly 50% of computer hardware is leased today at major corporations across the country.

Leasing offers easier upgrades   Purchasing IT hardware ties you to the depreciation schedule and budgetary constraints.  Leasing hardware offers modifications to the contract for a nominal increase or decrease in the monthly payments, and an extension of the term.  In effect, leasing provides for an accelerated depreciation schedule.

Leasing provides for a consistent monthly cost:  Your lease payments are the same every Month making your operation much easier to budget for.  No surprises for management to fret about.

End of lease Trade-Ins: When your lease is finished, you return the equipment no longer needed, for a refresh.  No worries about disposing of end-of-life hardware purchases and worrying about landfill regulations etc. 

Leasing may be a good fit:

• If you need equipment that you know will be obsolete in a few years.
• If you would like more consistent cash flow in your business.
• If your company would like to take advantage of tax benefits from leasing.

Types of Leasing:

Call Bytek today to discuss leasing 866-218-9567  sales@bytekcorp.com