IT equipment is essential for businesses in 2021. The main question is — leasing vs financing IT equipment? There are pros and cons for both options, but it depends on the kind of working environment, efficiency requirements, and budget.
One of the greatest advantages of leasing is not being financially responsible for the equipment. Rather than having your company held responsible, you would be passing the financials to the leasing company. Instead of paying up front for the equipment needed, leasing allows you to set a monthly payment. A lease is also an option that will guarantee the same equipment with fixed monthly payments.
Financials aside, leasing provides access to the newest, up-to-date equipment. Once your equipment has run its course, you can easily upgrade. Newer equipment requires less maintenance, which allows for greater productivity.
However, there are some disadvantages to leasing IT equipment. Depending on your leasing terms and IT needs, leasing can be more expensive than financing — especially if you sign a lease and don’t end up using the equipment, as you are still obligated to pay.
If leasing isn’t for you, you also have the option to finance. When financing, there are no contracts involved — you simply buy the equipment directly from the source. If maintenance is required, financing allows you to go about it at your own discretion. You won’t need to make an appointment with the leasing company or be stuck with damaged equipment. When you own the equipment, you can simply take care of everything on your own.
For businesses on a tight budget, financing is the more cost-effective option. With one simple payment, the equipment is yours!
However, there are a few downsides when it comes to financing. Depending on the business, making a big investment like this could max out your credit lines. Furthermore, you could be stuck with outdated equipment, whereas in leasing, updated equipment is always available.
The Final Decision
Between financing and leasing IT equipment, both have their pros and cons. However, it is up to you to decide which option is most cost-efficient, given your budget and IT needs. For the most advanced models that don’t require one big payment, leasing would be the best option. For a one-time payment and maintenance freedom, the best option would be financing.