With the global economy undergoing a digital transformation, keeping up with the pace of technology is now a requirement not an option. Technology is changing the way all businesses compete for and serve their customers. However, updating current technologies as industries evolve can be financially challenging for most businesses, but this doesn’t need to be the case.
Leasing is a cost-effective solution to access the equipment needed to grow your business and use during its useful lifespan and when it is no longer working at its optimal potential, you can return it or buy new equipment.
Here are some of the top reasons organisations are turning to leasing:
1. Protection against technology obsolescence.
Leasing an IT asset over a set lease term reduces the risk of obsolescence. Leasing adds structure with built-in upgrades that provide a schedule for regular equipment refresh cycles.
Holding onto legacy equipment or sweating your IT assets will become a thing of the past. There is now an opportunity to always be at the leading edge with state-of-the-art equipment.
2. Operational efficiencies
Technology progresses at a fast pace in the IT field, where new, better-performing products (computers, software, smartphones, etc.) are released onto the market every year.
Leasing this type of equipment allows businesses to upgrade their equipment regularly at the end of the contract without worrying about any budgetary constraints.
Now there is a solution to maintain high levels of operating efficiency with equipment that can boost productivity and profit, minimising the stress brought about by old and slow equipment.
3. No upfront costs
Technology is expensive. Purchasing hundreds and thousands of assets will require a huge capital investment upfront. Leasing provides organisations with the ability to acquire the assets they need today and pay for the investment over the leasing term.
The initial CAPEX is broken down into manageable payments over 36 - 48 months. You avoid the lump-sum payment and upfront costs, and the lease ensures that your business has the latest technology when its required.
4. Preserve cash flow
Businesses often find that they have to stretch their budgets over a multitude of operating costs such as staff salaries, office space rentals, insurance, marketing, advertising, etc.
Leasing the technology you need is a great way to reduce capital expenditure demands and use your cash flow for other areas of your business.
Cash is king, and it makes sense to use it for expansion or critical business needs and not to tie it up in equipment that depreciates and has little resale value after a few years.
5. Asset disposal
When you own your IT equipment, the burden to recycle it or dispose of it once it eventually becomes obsolete rests with you. With leasing, 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.
Also, with the right leasing partner who includes IT Asset Disposal services, you can dispose of that old equipment in a safe, eco-friendly manner - removing the environmental impact of IT.
CIOs are typically aware of the need to replace IT hardware with newer more capable equipment that offers better efficiency. However, the cost to upgrade can be a drawback.
Leasing is the perfect solution here. It removes the financial restraint, so you can access the equipment you need today, and pay for it overtime. This way, organisations can refresh their hardware, and still maintain a healthy cash reserve.
For more information, get in touch with our team today.