Buying or Leasing IT Equipment: Which is More Practical for a New Business?

As the global economy hesitates to grow in a continuous and sustainable manner, every investor is anxious about buying equipment for new businesses. You are unsure about your business’s future, and that makes you hesitant about purchasing a whole pack of things that ‘might just lose value’ and end up in a stock room in case your business fails to succeed.

This is understandable, and is a common predicament for those who want to make the most out of their investments. Whether that is a new thermal printer, a new computer, a laptop, or a mobile device, you should strongly consider the following reasons before deciding to lease or buy new office equipment.

1. Leasing frees you from obsolete gadgets and equipment.

The IT industry is one of the fastest to release newer versions and updated models. This means that you may get a copier this month, and the next half year, you would see a newer version—something that offers better features for your business’s needs. Depending on the length of your leasing contract, you can upgrade to a better model once your contract ends.

2. Fixed or semi-fixed monthly expenses.

Rental companies often cover maintenance fees for their rental equipment. This means that you will only have to consider the net rental fee for your monthly expenses. The better you are at budgeting, the better your income.

3. Less spending, but better chances at competing.

Without spending large amounts of cash to purchase your own equipment, you can still compete with larger businesses with higher revenues. As a result, your new business can target more customers.

For example, you can rent out your own telephone system based on your needs (VoIP is typical for smaller business, while bigger ones choose landline phone systems because of their stability).

While there are cons in renting out your equipment, such as bigger long-term costs compared to buying your own, the fluidity in value when it comes to IT equipment means buying your own does not ensure an increasing worth of assets. Once your business is big enough to shoulder the costs of buying your own equipment and updating them regularly, however, purchasing becomes a more practical option due to its long-term advantages.