Is it Better to Lease or Buy Business Tech?

In this day and age, technology plays a key part in the success of a business. The standard of the equipment that you use can make a real difference in the day-to-day running of your business. Whilst most business owners are aware of this, many smaller companies simply don’t have the finances to invest in expensive technology – that’s why leasing is such a popular alternative. However, when a company leases the technology it uses, it never actually owns the equipment and this is a downside for some. In this article, we will consider whether it’s better to purchase or lease your business tech.

This question can be answered fairly simply: it mostly comes down to your budget. If you have the money, it is usually better to purchase your business tech because this allows you to enjoy full ownership. Having said this, it’s important to ensure that the equipment you purchase is well suited to your business needs and that it will deliver a good return on investment. Otherwise, it could be money wasted. Regardless of the equipment you are looking to buy, it’s always a good idea to consult with providers as they will be able to advise you on the best solutions for your specific requirements. Business tech is a significant investment so you need to know it will earn its keep, so to speak.

This is where business telephone leasing, and business leasing as a whole, has its advantages. When you rent your equipment, you can avoid paying a large amount of money upfront. Instead, you will pay regular, manageable payments each month and the money you save can be invested elsewhere in your business. Like finance, leasing gives you a way of spreading the cost over a longer period. However, leasing differs from finance in that you won’t eventually own the equipment. Despite this, leasing is a more viable option for many small businesses, in particular, that struggle to obtain credit.

Another benefit of leasing is how cost-effective it can be. Many businesses are surprised at how affordable lease payments are, even on high-end tech. It’s also much easier when it comes to upgrades. If you own your own equipment, you will have to contend with the regular upgrade cycles and this can be extremely costly. With leasing, on the other hand, you can enjoy new technology every few years at little or no extra cost.

If you purchase your own business tech, you will be responsible for removing the equipment when it is no longer needed. Technology devalues quickly these days, so it is unlikely that you will recoup anywhere near the original cost if you decide to sell it. However, it is still a business asset and the resale value will depend on the particular equipment you have and how old it is. If you invested in high-end tech it may still hold some value.

On the whole, most businesses that can afford to purchase their own business tech do. This is primarily because they like to have the business asset and also because it typically works out cheaper over the lifetime of the equipment. Nevertheless, leasing has its own merits and is a great solution for small businesses with limited capital.