Harnessing the latest IT and computer technology is key to enabling business advantages such as fully integrated mobile working. Given the speed at which technology changes, and the onus on companies to keep up with the competition in terms of IT infrastructure efficiency, IT and computer leasing has much to recommend it and is now one of the most popular means of financing technology investments.
However, if you are a business thinking about leasing equipment, you should be prepared to do your homework in order to get the right IT and computer leasing deal for your circumstances.
Questions To Ask About IT & Computer Leasing
- With a capital or finance lease, you select the equipment you require and the finance company arranges the finance for it. You make a series of lease rental payments over time, which gives you use of the asset for the duration of the lease and at the end of the lease, you will normally have the option to acquire the asset at an agreed price or return it to the leasing company.
- With an operating lease, the equipment is considered a monthly operating expense rather than a depreciating asset, making ‘off-balance sheet’ funding possible.
- How long is the lease for? Usually, leases for computer equipment run over 24 to 36 months. The longer your lease, the lower your monthly payments–but you’re also likely to pay more over time with a longer lease.
- Does the equipment have to be insured? Some leasing companies require you to insure the leased equipment. If you don’t, fees may be added to your monthly payment to cover insurance.
- Can you include software and maintenance services as part of your lease agreement?
- Can I add to the lease? Most leasing companies don’t mind if you add equipment to an existing lease. Your lease payment will be recalculated accordingly; lease terms don’t usually change.
- Can I terminate the lease early? What if you no longer need the equipment you’re leasing or you want to upgrade to newer technology sooner than you expected? Find out in advance if you can pay off your lease early, and if there’s a prepayment penalty (and if so, how much?).
If you require IT equipment such as computer hardware, software, servers, laptops, routers and cabling for your new company or company expansion, leasing may well be a good option. After all, you wouldn’t pay your employees their wages for 3 years upfront, so why tie up a large amount of cash on computer equipment for them to use – especially when you could earmark that money to establish or grow your business?
For more information about your IT leasing options call WestWon on Tel: 01494 611 456. You can also download Financing Your Business Plans – Guide To leasing