5 Reasons Why You Should Be Leasing Your Technology Equipment
In the current era of disintermediation and dis-ownership, purchasing technology hardware is a thing of the past. In the future, most products will be delivered As-A-Service or subscription. For example, you won’t need to own a car in the near future, all you will need is a smart phone that can hail your self-driving car when you need it.
Some of the greatest disruptors of our age do not own any assets, think Uber, Airbnb and Amazon. Now why would you want to own your IT equipment? Lease it instead. A lease uses a pay-per-use model where you get access to the equipment you need, for the time period you need it for and you can return it to the leasing company at the end of the contract.
What are the benefits of leasing?
1. Preserve cash flow
Businesses often find that they have to stretch their budgets over a multitude of operating costs such as staff, training, office space rentals, advertising etc. Leasing the technology you need is a really good way to save cash and redirect it to other areas in your business. In addition to this, should you find a leasing partner such as InnoVent, an IT leasing specialist who offers subsidised finance, you will be able to reduce total cost of ownership.
2. A fixed interest rate instead of a floating rate
Unlike a bank loan where repayments and interest rates fluctuate, leasing equipment gives you a fixed rate for the term of the lease. You pay nothing upfront and with predetermined monthly payments, you can budget better.
3. Keep your equipment up to date
Leasing ensures that you always have the best equipment, be it desktops, laptops or other hardware without running the risk of investing fortunes in machines that will become obsolete in a few years. Most IT equipment has a short life span and will become obsolete after 3 – 4 years.
Tying up your funds in these assets will cost you in the long run as the equipment begins to age, but with a lease, you can always upgrade to new modern technologies during the leasing period.
4. Reduced downtime
Sweating assets might save capital or reduce cash demands but support costs and failure rates are inevitable. As IT devices age, internal components progressively wear out, leading to slower performance. Productivity will suffer and the costs to maintain the outdated equipment will rise. If you are on a lease, you will have the opportunity to trade in the slow and outdated equipment for newer versions.
5. Asset disposal
When you own the IT equipment, the burden to recycle it or dispose of it once it eventually becomes obsolete rests with you. With leasing, however, this hassle is taken out of your hands and falls solely on the leasing company. It’s their responsibility to take care of it, not yours.
When you are looking to cover an entire IT implementation, specialist IT finance companies such as InnoVent can cover your technology programme through the entire asset life cycle from inception, asset management during the leasing period, to the asset refresh or disposal stage. InnoVent is well positioned in the market to offer innovative solutions to finance and manage a spectrum of standard and specialised equipment.