Finanace & Leasing
At Altech we can offer IT Finance and Leasing.
We have been offering leasing and financial services to our clients for over 2 decades
We have dedicated financial assistants that will help you every step of the way
Speedy and seamless turnaround
Backed by all major institutions and financiers
Transparency from start to finish
An experienced team you can trust
Tailored Solutions, specialised for your exact needs
Should You Lease or Buy Your Tech Equipment?
Leasing: The Benefits
Leasing keeps your equipment up-to-date. Computers and other tech equipment eventually become obsolete. With a lease, you pass the financial burden of obsolescence to the equipment leasing company. For example, let’s say you have a two-year lease on a copy machine. After that lease expires, you’re free to lease whatever equipment is newer, faster and cheaper
You’ll have predictable monthly expenses. With a lease, you have a pre-determined monthly line item, which can help you budget more effectively.
You pay nothing up front. Many small businesses struggle with cash. Because leases rarely require a down payment, you can acquire new equipment without tapping much-needed funds.
You’re able to more easily keep up with your competitors. Leasing can enable your small business to acquire sophisticated technology, such as a voice over internet protocol (VoIP) phone system, that might be otherwise unaffordable. The result: You’re better able to keep up with your larger competitors without draining your financial resources.
Leasing: The Downsides
You’ll pay more in the long run. Ultimately, leasing is almost always more expensive than purchasing. For example, a $4,000 computer would cost a total of $5,760 if leased for three years at $160 per month but only $4,000 (plus sales tax) if purchased outright.
You’re obligated to keep paying even if you stop using the equipment. Depending on the lease terms, you may have to make payments for the entire lease period, even if you no longer need the equipment, which can happen if your business changes.
Buying: The Benefits
It’s easier than leasing. Buying equipment is easy–you decide what you need, then go out and buy it. Taking out a lease, however, involves at least some paperwork, as leasing companies often ask for detailed, updated financial information. They may also ask how and where the leased equipment will be used. Also, lease terms can be complicated to negotiate. And if you don’t negotiate properly, you could end up paying more than you should or receiving unfavourable terms.
You call the shots regarding maintenance. Equipment leases often require you to maintain equipment according to the leasing company’s specifications, and that can get expensive. When you buy the equipment outright, you determine the maintenance schedule yourself.
Your equipment is tax deductible. With most leases favoured by small businesses, you can claim the cost of equipment and maintenance against your tax.
Buying: The Downsides
The initial outlay for needed equipment may be too much. Your business may have to tie up lines of credit or cough up a hefty sum to acquire the equipment it needs. Those lines of credit and funds could be used elsewhere for marketing, advertising or other functions that can help grow your business.
Eventually, you’re stuck with outdated equipment. As I mentioned earlier, computer technology becomes outdated quickly. A growing small business may need to refresh its technology in some areas every 18 months. That means you’re eventually stuck with outdated equipment that you must donate, sell or recycle.