Why now is the time to lease rather than buy
Moore’s Law continues to prove true as new technologies advance at an ever-increasing rate. In a FOMO (Fear of Missing Out) world, who wouldn’t want to get and stay at the cusp of technological advancement. But at what cost?
IT equipment is especially vital to effective business operations and can often be the differentiator that sets a company ahead of its competition.
Traditionally, businesses who want the latest technologies and solutions, need to be prepared to spend a lot of their own capital. This is no longer the case.
Buying IT equipment isn’t your only option. You can lease the equipment that you need.
More companies are offering businesses the ability to stay ahead of market trends without the investment and long-term commitment that reserved this illusive position to the privileged (and deep pocketed) few.
Here are four key benefits to leasing your IT equipment.
1. Save your working capital
Equipment leasing preserves your working capital for day-to-day business expenses, business expansions or unexpected business-related expenses.
A lease offers you a fixed, pre-determined monthly repayment amount, which can help you budget more effectively.
With predictable monthly expenses, you can develop long-term plans for your business with confidence and get your business set up with the equipment you need, while keeping your cash flow available for other expenditures.
Companies are realizing that ownership of rapidly depreciating assets is not always the best use of precious cash.
2. Spend less on IT equipment
When a company needs to buy IT equipment, it traditionally had two options – spending capital up front or obtaining a traditional bank loan that would include interest payments.
With leasing, however, you not only preserve your working capital, but your equipment costs you less over time because you never plan to own the equipment, as leasing companies offer residual valued finance.
This saves you from paying the full purchase price without impacting on the equipment type, usage period and the unforeseen costs associated with disposal (which could be up to 20% of the original equipment cost).
3. Invest in fewer depreciating assets
I.T is a rapidly depreciating asset that loses value in real terms and over a short period.
Depreciating assets typically have a short life span either in terms of its rapid use or the latency effect and these assets will have little or no resale value at the end of its useful life.
As a result, you may prefer not to own the equipment or sit with the headache of deciding what to do with it once you require new technology.
Equipment leasing can help you stay on top of the latest advances in equipment and technology.
If you work with technology that changes rapidly, you can opt for a short-term lease to ensure you’re always at the cutting edge in your industry, or you can extend your lease to a longer period if suitable.
At the expiry of your rental contract, you may have the option of a complete asset refresh program that will assist you to move on to the next level of your procurement stage.
Whether you want to refresh with brand new equipment, return your old assets or extend your current rental contract, the right leasing company can provide you with the required assistance to ensure that your investment is maximised.
InnoVent’s IT leasing solutions
InnoVent offers specialised leasing and life cycle management solutions for rapidly depreciating assets, providing tailor-made financial solutions for our clients.
Having been in the industry for almost 15 years, InnoVent has come up with an innovative way to finance and manage a spectrum of brand new standard and specialised equipment.
Unlike conventional financing, InnoVent offers subsidised finance. That means that you only pay for a portion of the equipment for the duration that you use it.
InnoVent covers the rest of the cost. In doing this, your rental costs reduce significantly resulting in a lower cost of finance that compare favourably to traditional forms of finance.
In addition to that, InnoVent offers asset management solutions such as asset tracking, an asset manager, online reporting tools, comprehensive insurance & warranties to help you manage your equipment for the duration of the lease.
If your business relies on the latest in Information Technology, and you subscribe to the pay for use (Hardware-As-A-Service) philosophy, leasing your equipment is the best option for you.
Who wouldn’t want to save costs in these most uncertain times and use your cash for more certain strategic or operational requirements.