While starting or growing a business, you might have cash in short supply and in order to reimburse the invested cash you have to generate quick revenues. However, to do that you need the latest technology in your hand.
One way to do it is to lease essential office equipment instead of buying it which can save you from making a huge investment. You can easily rent computers, fax machines, iPods, tablets, and other IT gadgets.
Following are the advantages of leasing technical equipment for business use:
The basic benefit of leasing is that it frees up cash flow. When you plan your cash flows, equipment leases are rarely noted. Though you keep some funds aside in case of a refunding or exchanging situation. Normally, the loan you take to acquire any equipment typically requires around 25 percent or more of your cash flows.
Banks are always useful for leasing procedures. All they want to see is your company’s record of the previous two to three years which most of the companies don’t have and they bear certain issues. Juxtapose, the leasing companies on the other hand usually demands only six months to a year of credit history before approving any official leasing statement.
Leasing is impressive as it relies upon cutting-edge technology like the latest laptops, tablets, and iPad in the market. Whereas buying these devices won’t allow you to switch to the updates on this soon. You have to bear a huge amount of cost on getting the new ones. Leasing policies are not like the traditional ones but with the change, they are more customer-friendly.
For a small business, it’s not possible to make a big investment in buying new gadgets for all the employees. However, leasing is a great option that offers an ample amount of benefits that can boost your employees’ morale and productivity.
According to the rule of SOFP (Statement of Financial Position), you can exclude some leased assets and related obligations from your accounts. This can benefit your business in showing more assets which concludes to ultimate profit. The accounting rules only follow the profit statement which will eventually increase with the rising amount of assets.
If you are sure to lease IT gadgets then make sure to keep this process for a short term, two years is the ideal period. Try to negotiate as much as you can and stay updated with the exchanging process to avoid ending up paying for obsolete technology. Also, try not to cancel any order as the cancellation clause says that you have to pay a fee to cancel the lease.
Leasing is a better option rather than buying new equipment. For a business that has stepped into the market, it’s best for them to lease their necessary technical equipment. One World Rental is the best available option for all your latest tech solution.