There has often been much debate about lease purchasing, however it is becoming a popular choice when looking at large investments such as purchasing new IT hardware and network infrastructure rebuilds or upgrades. Spreading the cost of IT hardware investment over lease finance can help an organisation budget, plan for the future and help maintain cash flow.
One of the most significant advantages of spreading the cost of IT hardware though leasing is that it allows an organisation to adapt quickly to changes in requirements and is ultimately a much more cost-effective option when looking at investing in new IT hardware or other large purchases. Leasing finance is often far more accessible and easier to obtain than a bank loan to purchase equipment, especially for small or new businesses that may not possess the trading history to secure finance.
Leasing finance allows an organisation to retain its business capital, that would have otherwise been spent on funding equipment purchases, and use this capital elsewhere. Capital is therefore available and free to invest in other parts of the business as there is little upfront cost when opting for finance leasing. In addition, with capital untouched, it means that should a business emergency present itself, vital funds are available to cover it (and in todays economic climate that can only be a good thing).
Equipment leasing can be beneficial in terms of leaving other finance options, such as a loan, untouched. Therefore, the option of a loan remains available for other business needs. Another benefit, one of the main reasons for opting for lease finance is the ability to claim your lease rental payments as a business expense, as it is not a fixed asset for your business. This is can be a huge ‘thumbs up’ for tax purposes.
Q6|iT can provide lease options for the purchase of IT hardware as well as R&D with payment options to suit. Contact a member of the team to find out more.
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