6 Benefits of Leasing Your IT Equipment

Most businesses have a lot of different expenses to contend with, but one of the biggest will usually relate to IT equipment. In 2020, this has been a bigger issue than in most other years, because the outbreak of coronavirus has forced businesses to adjust their practices and, in many cases, allow their employees to work from home.

Of course, to create a high-quality remote working environment, employees are going to need access to the latest equipment and this may mean investing in a large amount of equipment at once. For this reason, companies are increasingly turning to equipment leasing and in this article, we provide an overview of six key benefits.

1. Lower Initial Expense

On a basic level, one of the single biggest advantages of leasing your IT equipment, as opposed to buying it outright, is the lower initial costs involved. IT equipment is often expensive and this is especially true if you are investing in a lot of equipment at once, such as in situations where you are expanding or changing business practices.

If you buy the equipment, you are going to need to spend a lot of money up front and this may not always be possible to do while balancing the books. Leasing offers a way to still obtain the equipment, while spreading the costs.

2. Predictable Monthly Costs

In addition to reducing your initial outlay, switching to a model where you lease your IT equipment can also make costs more predictable. This can be especially important in situations where your business faces uncertainty, as has been the case with the COVID-19 pandemic, where many companies have employees in a remote working environment.

At Fifosys, we are able to offer leasing options which span either two or three years, spreading your equipment costs over this duration. By adopting this approach, you can switch equipment costs from unpredictable and large up front costs, to much more predictable monthly costs, which are then much easier to budget for.

3. Simple Equipment Upgrading

One of the biggest problems with investing in IT equipment is the fact that much of it can become obsolete relatively quickly, and this is especially true for computers and other similar devices.

With this in mind, leasing IT equipment has the potential to make upgrading easier, because you can lease the most up-to-date equipment. "A lease passes the burden of obsolescence onto the lessor," an article for Nolo.com explains. After your current lease expires, you are then free to take out a new lease, obtaining more up-to-date equipment in the process.

4. Access to Better Equipment

Not only can leasing your IT equipment allow you to upgrade regularly, you can also potentially gain access to a higher standard of equipment in the first place than you would if you were buying the equipment.

During the early stages of the coronavirus pandemic, many companies found themselves in a situation where they suddenly needed to provide multiple employees with access to hardware such as laptops for example. By spreading these costs out over a period of years, some of these companies were able to buy better hardware than they would have if they were paying up front.

5. Built-In Maintenance

As an article for ITPro.co.uk points out, one of the other major advantages of leasing IT equipment is the fact that it allows you to avoid the maintenance or repair costs that are typically associated with buying equipment outright.

This is possible because most of the companies that lease IT equipment to businesses will do so while offering built-in protections as part of the agreement. This will typically mean that if a piece of equipment goes wrong, the lessor will retrieve and fix it for you, or they will offer up a fully functional replacement for you.

6. Tax and Finance Benefits

Finally, it is worth noting that leasing your IT equipment can also deliver tax benefits and other financial advantages besides. Lease payments are usually tax deductible, lowering your liability when you file your tax return.

Beyond this, a lease agreement tends to be much easier to obtain than the kind of loan that may be needed in order to purchase equipment outright. This can be especially beneficial for small and medium enterprises, and newer organisations in general, because these companies are less likely to have an extensive positive credit history to rely on.

The Final Word

Leasing IT equipment clearly provides multiple benefits for your organisation. Most significantly it allows you to adapt quickly to changes in requirements, and is ultimately much more cost effective.

If you have any queries or would like to discuss your needs with regard leasing IT equipment please don’t hesitate to get in touch.