Leasing vs. Financing IT Equipment
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.
Leasing
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.
Financing
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 Furthermore, you could be stuck with outdated equipment, whereas in leasing, updated equipment is always available.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.
Not sure whether to finance or lease IT equipment? We can help! Feel free to give us a call or visit our website!
Within every industry, from heavy machinery to computers, possessing the relevant equipment allows a business to properly operate and grow. However, certain equipment may require a costly investment.
If a business is seeking to purchase new equipment or upgrade existing inventory, equipment financing and leasing has become a popular method of equipment acquisition.
Equipment financing and leasing is used to provide companies with the capital necessary to purchase needed equipment–the equipment acts as collateral for the loan. Regardless of the type of business and size, financing important equipment through a finance arrangement can be beneficial. Here’s how:
• Save money. Equipment financing can save a business money by bundling the equipment, installation and maintenance for a single, cost-efficient solution that maximizes budget.
• Stay up-to-date. Because of its affordable cost, a business can remain up-to-date with changing technology trends and equipment to maintain competitive advantage.
• Accelerate ROI. Tax leases allow businesses to secure working capital, invest it, and make more money while paying less for the equipment by writing off payments.
• Hedge against inflation. Financing and leasing allow business owners to lock their original signing rates to avoid future equipment inflation.
• Tax advantages. Depending on the structure of a lease, all lease payments may be written off as a deduction.
WesTec Services provides commercial equipment financing and leasing solutions for businesses of all types. At WesTec, our experts work diligently with both equipment buyers and vendors–offering an equipment financing solution that is suitable for all needs.
Our monthly-payment package may include equipment, software, maintenance, shipping, installing and training for a true turnkey solution for business technology.
Whether planning the purchase of a single piece of equipment or designing a system for future development, WesTec strives to provide the appropriate business technology analysis for optimal business growth! Contact us today!
2916 West TC Jester Blvd.,
Suite 104
sales@westecservices.net