IT Equipment Leasing Overview

Written by Steven Bryan

In the 21st century, technology changes so quickly that as soon you uncrate a brand-new computer or printer, it's probably obsolete. IT equipment leasing offers a simple and economical way for your company to keep up with the latest technological trends.

Advantages to Leasing
Leasing offers many attractive advantages over buying, especially when it comes to your cash flow and bottom line:

• Pay-as-you-go: Leasing means less of an initial cash outlay than buying, so you won't have as much money tied up in a new copier or printer. You also could possibly lease more equipment than you could afford to purchase outright, which is great if you are expanding the business.
• Tax benefits: Depending on what kind of equipment your company leases, you may be able to claim the monthly payments as business expenses on your taxes.
• Keeping ahead of the technology curve: IT equipment leasing keeps your company on the cutting edge, depending on the length of the contract. At the end of the original leasing period, you can either keep what you have or upgrade to faster computers or better-looking monitors.
• More storage space: Most companies these days have a "technology graveyard" somewhere on their property that's filled with old hardware. With leasing, however, when the contract is up, you simply return the obsolete equipment to the vendor instead of storing it in your warehouse or back closet.

IT equipment leasing pitfalls

• Terms and contracts: Once you sign on the dotted line, your company is financially obligated for the entire term of the lease. You may lose money by leasing computers or fax machines that you don't use when business is slow.
• The true cost of equipment: You will, over the long term, pay more for technology through IT equipment leasing than buying it outright. Depending on the duration of your contract, the true cost of new technology can make leasing cost-prohibitive.
• Ownership: There are definite tax advantages to actually owning equipment, including writing off the depreciation. You also have the ability to sell something you own and, in some cases, make a profit on the sale.

Make sure to negotiate
When choosing IT equipment leasing instead of buying, it pays to sit down and really hammer out the terms of a contract. Some leasing companies are willing to allow you to upgrade to newer models and more efficient equipment during the life of the lease. If, for some reason, you need to return the equipment early, the leasing company may allow you to add an "escape clause" that limits how much of a penalty you have to pay.

Talking to several equipment leasing providers is the best way to compare prices and contract stipulations. We can introduce you to qualified IT equipment leasing companies – just fill out a free quote request form.