Office Equipment Leasing
Guide to office equipment rental
In many cases, office equipment leasing makes more financial sense than buying the things you need. If, for example, yours is a newer company, office equipment rental is typically easier on company finances.
In some cases, you may want to buy some pieces of equipment and lease others. You need to sit down and do a cost analysis to figure out which approach is best for your company and know what to look for in a good lease for office equipment.
When to Lease Office Equipment and When to Buy It
The most important advantage of office equipment rental is your ability to procure and take advantage of new equipment without significantly reducing your cash flow. Since new businesses typically have lesser cash flows than established ones, it is common practice for start up companies to rent office equipment rather than buy it.
In the world of small business equipment leasing, it is also usually easier to pay a monthly lease than it is to get a loan to buy new equipment. Taking out loans for equipment taps your ability to secure financing for other, more time-sensitive and critical ventures.
However, if you have the money on hand, buying equipment adds value to your business. It is common practice for companies to purchase equipment that retains its value, such as furniture, and renting equipment that depreciates rapidly. This is the reason that copier leasing and computer equipment rental services are in high demand.
As a general rule, if you're going to need something for a relatively short period of time, look at renting it. If you're going to use something for years to come and it will retain its value, it's probably better to buy it.
Business Equipment Leasing Tips
Flexibility is key. You don't want to trap yourself in a business equipment lease you can't get out of, should you free up the capital to purchase new equipment, find a more attractive lease or no longer need to things you're renting. Figure out how long you'll need the equipment, and seek a lease that offers you service on your terms. Don't alter your lease term to suit the policies of an office equipment rental company.