Leasing has been utilised by organisations of all sizes in the UK since the industrial revolution. The question is why?
Investing in the right technology is vital to the success of any organisation and leasing equipment has become increasingly popular among businesses compared to buying outright.
It is crucial that employees have access to the latest equipment to create a high quality working environment and this may mean investing in a large amount of equipment at once. Leasing provides a wide range of equipment options, as well as making it financially possible to afford equipment that would otherwise be too costly to purchase.
However, this is just one advantage of leasing computer equipment.
Obtaining equipment through a lease is one of the most efficient ways for businesses to stay at the top of the industry’s development curve. With ADNS’ modern and continually developing leasing solutions, there are now more reasons to lease than ever before.
Here are just a few of the ways leasing IT equipment can be beneficial for your business.
1) Access to new equipment utilising OpEx instead of CapEx
Capital expenditures are a company’s major, long term expenses used for static investments whereas operating expenditures are a company’s day-to-day expenses and looks at fluctuating costs. Leasing equipment, rather than purchasing it outright, moves the investment from capital expenditure (CAPEX) to operational expenditure (OPEX).
Leased devices give you greater asset flexibility. By moving to OpEx, your cash flow is improved as there is less need to borrow cash and fewer items to track
2) Tax efficiency
Leasing your IT equipment can also deliver tax benefits alongside other financial advantages. Crucially, the total cost of finance lease rental payments are tax-deductible as a business expense against your profits. This means they qualify for tax relief for the duration of the lease agreement and help to reduce your business' overall tax bill.
Beyond this, a lease agreement (especially for small to medium enterprises) tends to be much easier to obtain than the kind of loan needed to purchase equipment outright.
3) Improved Asset Management
An asset is defined as any item of value that is deemed important by the organisation. Updated software and technology can enable new levels of asset performance, which can help extract more value out of your company's infrastructure.
Companies must be flexible and adapt their asset management process to best enable the business, and leasing equipment gives companies the flexibility to do this.
4) Planned equipment refresh
The world of business is rapidly changing due to the rate of innovation in the industry. Regularly updating key elements of your IT infrastructure is vital in ensuring maximum system performance.
At ADNS we can keep your refresh cycle consistent, ensuring that the hardware is leased for a period of time, with flexibility to add devices to an existing contract. This also reduces the chance that your company is left with obsolete equipment if your contract specifies upgrade.
5) Fixed costs
At ADNS, we are able to offer leasing options which span over a period of time that suits your business, spreading your equipment costs during this duration.
Because of this, leasing assists accurate budgeting and forecasting, as leases are tailored made for your requirements. As leasing is a fixed cost, and inflation rises, the real cost to you will decrease.
Benefits of leasing equipment - where to find out more?
Stay competitive with the latest technology and adapt quickly to changes in requirements. If you have any queries or would like to discuss your leasing needs for your commercial business, get in touch with ADNS today.