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- By: MISCHA WESTON-GREEN
- 3360
Many directors nowadays are faced with a similar problem, to buy or to lease? There are benefits and drawbacks to both decisions, however many directors may not be aware of the wider benefits of IT leasing and how this will positively effect the overall performance of the business. This article will focus on the well-established benefits that IT leasing can provide a company and look beyond these traditional, financially orientated benefits towards the holistic benefits computer leasing may have.
One of the core benefits of IT leasing is that it can be regularly updated with no initial financial outlay for a business. This is of massive benefit as many companies simply do not have the cash-flow to be continually updating their hardware to the latest model, which in itself will be defunct in 12 months time (this is especially true with computer software).
However their are massive benefits to a companies brand image by being able to continually update their technology to the latest programs and models. It will generate the idea in a customers mindset that the company is on the cutting edge of technology and show real dedication to being a innovative leader in their market, which will help create a competitive advantage little do they know this is done with very little cost.
Also constantly being able to update your IT can bring many everyday benefits such as implementation of new project management software that can help reduce time and opportunity costs. This in turn can lead to increased efficiency and more accurate company plans, which all increase the overall performance of the company that would not have been available without IT leasing.
The fixed rate nature of a lease means that a business has more control over its monthly expense and therefore allows them to budget more accurately. Increased budgeting efficiency is a major benefit as every business is under pressure to justify its expenditure and prove the return on their investments. Further more leases are not affected by inflation and in the present financial climate a genuine fixed rate of payment is a god send for a business.
As IT leasing is generally cheaper than buying though a bank loan, which usually require a large down payment of around 25% which generally means that the APR increases by up to 5%. This means that each month a company who use IT leasing can free up more working capital, which can be reinvested in areas such as brand building and customer relationship management.
As new technology can be difficult to install and could have teething problems during the first six months many IT leasing companies also offer consultancy services and support to help with any problems that may arise, this means that the company leasing can get the maximum performance out of the technology as they may not be technologically savvy.
To conclude, IT leasing provides a wide-range of benefits to a company that exist outside of the financial sphere and bring wider benefits to company such as clearer market positioning and more accurate plans and projections. IT leasing will also keep your company regularly updated and give you competitive edge when you are looking to refresh your technology.