Leasing, or in our case hardware leasing, is getting hardware from third-party finance and paying for it in manageable monthly payments based on a pre-agreed amount. It is similar to a loan; however, the loan is secured to the assets that have been acquired. This allows for a lower interest rate.
By choosing to pay for your hardware monthly you are preventing your finances from being tied up in depreciating assets. Hardware leasing allows you to invest your capital into more profitable streams.
8 Benefits of Hardware Leasing
Protecting your cash flow:
Get the equipment you need for your business without incurring large upfront costs.
Increase Profitability
Manageable monthly payments for your hardware allows you to invest your working capital in more profitable ways.
Pay as You Use
Hardware has an average life of 3-5 years, so you can spread the cost over its life. On top of this, you can easily upgrade your hardware at the end of your contract and keep the same or similar monthly payment.
Tax Allowable
Hardware leasing is considered an operating expense. This means that each payment is tax-deductible.
Get the Best Quality
Manageable monthly payments let you afford the latest technology available for your business. So, when it comes to upgrading your hardware, you will have the freedom to choose the best for your needs rather than what is affordable at the time.
For the duration of your lease, your monthly payments will remain the same. Meaning no sudden increases in payments, so you can easily budget in advance.
Flexible End Term
Once your lease agreement has ended you have several options available for you. You can keep your hardware, upgrade it, or return the equipment. We would recommend upgrading your hardware. As said earlier hardware only has an average life of 3-5 years, so upgrading it is an excellent option to keep up to date with the latest technology and keep the same or similar monthly payments.
There are many benefits for choosing hardware leasing over the outright purchase of a product. Hardware leasing allows you to focus more on the growth and development of your business rather than your budget. It is an excellent way to get the most applicable hardware for your business’s needs without making a dent in your finances, so you can keep your staff and customers happy.
