Finanace & Leasing
Should I lease or buy the computer equipment that I need ?
Leasing will Keep your “stuff” up to date.
With business equipment and a especially computer gear you have the added burden of stuff going obsolete just when you have gotten it through and implemented.
Ever had the feeling that you can never keep up? Leasing goes a long way in alleviating that feeling.
You will have a predicable monthly expense.
With a lease there is a pre-determined monthly amount that you can budget for.
You can pay nothing up-front.
Cash flow is a huge worry for most small business and leasing allows you in most cases to get the good stuff, the new stuff with no down payment. This means that you well be able to excel in your business and do what you do best, with the best tools.
You will be able to keep up with your competition.
Leasing can enable a small business to get the latest in cutting edge technology, tools and equipment. Making it much more affordable. This means that you will be able to keep up with your competition. and do much better than them.
What are the down sides of financing your way or leasing your equipment.
- You will pay more $$ In the long run.
- You pretty much have an obligation to pay out the lease even if you don’t need the equipment anymore.
What are the benefits of Buying?
Buying is much easier than leasing,
It’s easy you decide what you need and then just o and buy it. Leasing requires some paper work and there are some terms and conditions that you may want your lawyer or accountant to have a look over. This could mean more cost.
You get to decide what you do in regards to maintenance.
Leasing equipment often comes with conditions and requirements that you must adhere to when it comes to maintenance. You may have to get the equipment serviced at a certain place and on a particular schedule. When you buy the stuff you decide exactly how and when it gets maintained. Provided you stick to the governmental rules and regulations in reference to maintenance of equipment.
Your tools and equipment are a tax deduction.
You can claim the cost of the tools, equipment and maintenance against your tax.
The downside of buying equipment.3>
The initial outlay or cost
The initial investment is so high that it may break you business. High cost of credit may hurt your business severely. You may need to keep those lines of credit open for marketing and advertising.
Eventually you will be stuck with old and outdated equipment.
Computer equipment becomes outdated and old very quickly. The life cycle is astronomically short. You don’t want to be stuck with old tools and equipment that you can’t even give away let alone sell.