With today’s rapidly changing technology, it can seem impossible to keep your office equipment up-to-date. Small business, with small budgets, must decide if it’s worth the expense to upgrade. However, many pieces of office equipment can be leased instead of bought. But how do you know if that’s the right option for your business?
Part of the decision to buy or lease has to take into consideration your cash flow and what it will ultimately cost you. While buying is a big upfront cost, leasing often costs more in the long run. Before choosing to lease, look at the interest charges, setup fees, insurance, early termination policies, and other contract clauses they may make your bill skyrocket. All of these costs factor into the overall price of the equipment.
For some pieces of equipment and some businesses, leasing may still make sense even if it costs more, due to the ability to space out payments over time.
Return on Investment
If you’re looking at getting a new piece of equipment, you’re trying to solve an existing problem. However, the cost of new equipment can be prohibitive, and you may not be able to afford the purchase price of the equipment you truly need, thus settling for a “good enough” model.
Upgrading to new equipment can provide a lot of benefits to your company, including increased efficiency and expanded capabilities. This often makes leasing an appealing option, so you can get the most up-to-date equipment for a cost you can afford.
Length of Use
Another factor that should weigh into your decision to buy or lease is how long you intend to use it. For equipment that needs to be replaced or upgraded frequently, leasing is often the way to go. However, for longer-lasting equipment purchasing can be a better use of your money.
If you purchase equipment that you no longer need, you can also sell it to recoup some of your costs. Resale values should factor into your decision.
There are many factors to weigh when you decide if it’s better to buy or lease your office equipment, but ultimately the goal is the same: to obtain new equipment that will provide the best value to your business. By considering all the options, you can make the best choice for your business.