When Capital is Tight a Computer Lease Can Fill Your Business Needs By Jonathan P Powers At Isnare.com Ezine Articles

Capital can be tight in business for many reasons. These days recession is the word on the street and many businesses are tightening down their budgets for this reason along. However, small and medium sized businesses often begin with tight budgets, and they can run for a long time on tight budgeting, if they do it wisely. One way to work within a tight budget, but still accomplish lofty goals, is to fill your computing needs with a computer lease.

Buying Versus Leasing

The overriding train of thought is why lease something if you can buy it? As a purchased item, a computer becomes something you own and can use for as long as you want. It’s part of the overall property of the business. There are several compelling reasons to consider a computer lease:

-Leasing spreads out the cost of acquiring the right computers for your business over a longer term and will conserve your cash flow. Instead of using your company’s cash or credit on buying computers, a lease prevents you from using a large chunk of your capital up front.
-Depending on the laws of your jurisdiction, lease payments can be tax deductible.
-Lease agreements generally renew or end every 2-3 years, forcing your company to maintaining current technology, rather than getting by on older technology and leaving you at the risk of not being on the cutting edge. It also becomes easier and less costly to maintain a regular system of upgrading if your leasing agreement can include them.
-Reducing operating costs: having current equipment reduces the cost of technical support, repairs, and replacements. Some lease agreements also cover some or all of these costs, relieving the work of small IT departments.
-No need to incur the costs of reselling or disposing older computers, as the leasing company will provide these services with your computer lease.

All of these advantages also make a computer lease a savings in operating costs for your company as a whole, not just at the moment of purchase or lease.

Before You Take the Plunge, Determine What is Important for Your Computer Lease

Once you’ve decided that a computer lease is the wisest decision for your company, you will need to know what you require out of your computers in order to negotiate a successful leasing agreement.

-What kind of term do you want for your lease? Many companies provide a computer lease term that is between 2 and 3 years.
-How long should it be before your computers need to be upgraded? Depending on the business you are in, you may need your technology to be upgraded sooner or later than other businesses. Some leases include upgrades at regular intervals.
-Will your company need the flexibility to terminate a computer lease at any time? Examine the lease agreement for extra fees, especially upon termination of the agreement.
-Who is liable for repairs and replacements?
-Will you need peripherals, like printers, scanners, and fax machines, included in the lease. Some companies give better rates for packaged deals.

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