Why Lease Software?
Many actually aren’t aware that they can finance their software. When leasing is mentioned, software leasing often isn’t the first asset that springs to mind. But by leasing your software instead of buying, it can put your business at a significant advantage to your competitors. Along with several other benefits that I will be listing in this blog.
So, what are the benefits?
Boost your cash flow health
To begin with, your cash flow will benefit. As you may know, software can be a costly overhead! Acquiring your software on finance will undoubtedly allow you to keep cash in the business that wouldn’t otherwise be there if you were to purchase your software outright. But, by leasing it, you can invest this money into other areas of your business such as recruitment.
As mentioned previously, software is forever advancing! So, another substantial benefit to software leasing, is that you will be able to remain competitive in your sector. This is because you will be enabled to upgrade to the latest technologies on a regular basis through a refresh strategy. Whereas, by purchasing upfront, you are putting yourself at a disadvantage with a depreciating asset in your ownership.
Pay as you use
You pay your employees monthly, as they are adding value to your business. Why should any other valuable asset to your business be paid any differently? Software finance gives you the option to pay for your software just like you do for your employees, avoiding any damage to your cash flow.
Alternative funding line
Leasing is also great as an alternative funding line. So no need to use up an existing one!
Price lock your software
Additionally, with a software lease agreement you will lock in the price of the software over your rental term. This meaning that despite any price increases of your software throughout your term, the price will remain the same as it was from when your lease agreement commenced.
Similar to many other lease agreements, VAT is not required to pay in full and upfront. Instead, it is distributed across your rental period along with the rest of your payment. (And, if your VAT liability is getting the better of your business, VAT loans are a great way to relieve that pressure off of your cash flow. Find out more about VAT loans here.)
Also, did you know that 100% of your lease rental is deductible against your company’s corporation tax?
Are you interested in obtaining finance for your software needs? Give us a call on 01494 611 456, alternatively, send an email to firstname.lastname@example.org. Here at WestWon we work alongside a myriad of software suppliers. So we can provide you with a recommendation that suits your business best, we are always happy to help! Visit our software leasing page to find out more about software leasing and use our free software leasing calculator!