Purchasing IT products isn’t always financially feasible for a business. This is where technology financing becomes a handy tool. Leasing IT hardware can be a good option for a growing business like yours. Here are three leading reasons to consider technology financing.
1. Dollars and sense. The bottom line drives most business decisions. Leasing rather than purchasing conserves cash, both in upfront capital expenditures and monthly expenses. Figure out how many years a piece of hardware will be useful to your business, then work out a lease term with your leasing partner. A longer lease means lower monthly payments. Calculate payments to fit the budget of your business. Also, accounting standards treat lease payments as an operating expense, rather than a debt on your balance sheet, and there may be tax savings in leasing, as well.
2. It’s so refreshing! Another advantage of leasing is technology refreshing. Since IT equipment grows less useful or even obsolete over time, you can put terms into your lease that call for upgrading or adding equipment under certain conditions. Refreshing your technology can be done on a structured basis.
3. Facing the end. Not your life — the lifetime of leased equipment. End-of-lease options can be included into a leasing contract. You may want to buy your IT equipment when the lease runs out, so specify the terms of purchases at the end of the lease. Lease extensions are another possibility, if you feel there is still good use and value in the leased equipment.
The really good news is that flexible leasing solutions are available from top vendors, as well as other parties. Talk to your hardware vendor or IT services firm about your options in leasing.