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SpinDistribute.com Article Directory

The following article was published in our article directory on October 20, 2011.
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What are the Benefits of Leasing IT Equipment?

Article Category: Business Management

Author Name: Tom Cordova

Leasing IT equipment is a great way to meet your computer equipment needs without a high initial capital investment. Computers are a vital part of any office but they can be very expensive and tie up precious resources which could be used in other areas of the business to help the enterprise grow and develop. Leasing offers an affordable solution to this problem by letting you rent your computer equipment at a set monthly rate without the responsibilities of actually owning it. And leasing can also save you money in other ways.

Some of the benefits of leasing IT equipment includes:

No down payment or other upfront fees. This means that small businesses and other cash-strapped companies don t have to tie up their money to meet equipment leasing costs.

Predictable monthly equipment expenses. With leasing, you know exactly how much you re spending a month, making it easier for you to manage your operating costs.

Easier upgrading of equipment. When you rent your computer hardware, it is easy for you to upgrade simply by leasing newer equipment once the present contract expires. This also makes it easier for you to keep up with more capital-rich competitors.

Of course, there are also downsides to leasing IT equipment such as the fact that you may end up paying spending more for computers over the term of the lease compared to buying them outright. However, when you buy computer equipment, you also have to deal with the fact that IT hardware becomes obsolescent very quickly, leaving you with obsolescent technology that you will have to find a way to dispose of. Leasing saves you from these hassles by leaving the responsibility of ownership to the lease company.

There are two kinds of lease contracts that you can sign when you are leasing IT equipment, capital lease and operating lease. A capital lease passes the responsibility over the equipment to you, allowing you to benefit by declaring a tax depreciation to recover the costs of the equipment. In an operating lease, on the other hand, the responsibility of ownership remains with the lease company and the cost of the equipment is only considered a monthly operating expense rather than a depreciating asset. A capital lease has a longer term than an operating lease, usually five years vs. three years or less for operating leases. Lease contracts may also have a buy-out provision that allows you to buy the equipment at its fair market value at the end of the contract.

When choosing a company from which to lease your computer equipment, look at the range of services they offer rather than just the cost of the lease. For example, do they offer maintenance and technical support to help keep the equipment in good running order? Also when leasing IT equipment, check if the terms of the lease contract allow you to add new equipment to the lease as needed as well as letting you replace the leased equipment with updated units when you need new technology.

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