In our fast-paced, highly competitive lives access to technology is essential in order to maintain a competitive advantage. This critical technology, however, does not come without a price.
While views on IT are constantly changing, one thing remains consistent. The approach on funding, as cash still dominates. Many businesses opt to pay cash up-front for technology-based equipment and IT services. This is a means of effectively prepaying IT expenses, many years In advance, giving little to no thought as to how their needs will change over time.
IT hardware is likely to depreciate in value over time and has a range of hidden costs associated with it, including, installation of the equipment, managing and maintenance of the assets, and removing data once it reaches end-of-life.
Benefits of Leasing IT Equipment
Changes appear to be headed our way where the investment of IT equipment is concerned, and the leasing of such equipment is becoming a far more feasible option for many organizations. By leasing the necessary equipment, the ownership risk is transferred from the business owner to the lender. Also, financing costs are able to be claimed as an operating expense. Another major benefit to leasing is that it can free up cash flow that can be better served being used for other business purposes.
How It Works
Operator leases work by the lender paying for the customer’s required equipment. The customer then agrees to lease or rent the equipment for an agreed period of time, generally a period of a few years. Once the duration of the term has lapsed, the customer has several options available to them, as described below:
Tips For Leasing IT
Described below are several useful tips to help ensure you get the most out of your IT lease.