Your office equipment is essential to run your business effectively and thus an essential expense. But when it comes time to purchase new equipment, the price may be more than you can afford. Fortunately, there is often the option to lease office equipment – but how do you know if it’s the right choice for your business?
Your Cash Flow
Buying equipment outright usually results in the lowest total cost, but if you don’t have the cash on hand, it’s not an ideal option for your business. Although in the long run leasing tends to be a more expensive option, it can mean a more affordable monthly payment, allowing you to obtain the equipment you need to support your business now, instead of waiting until your budget allows you purchase the equipment.
Return on Investment
If you’re in need of new office equipment, you have the opportunity to upgrade your devices to ones that will provide more functionality, efficiency, and cost savings over time. When purchasing equipment, you may be restricted by your budget, and choose a “good enough” option. Leasing can provide you the flexibility to obtain higher-end equipment while still staying within your monthly budget. The return on investment on the specific equipment should be considered in your choice.
Length of Service
Some equipment has a relatively short shelf life and low resale value. This type of equipment is often good to lease, allowing you to stay on top of the latest technology without investing a large sum of money into your equipment. On the other hand, equipment that can last your business for years and retain some value over time may be the type of item you want to purchase, as it can have more lasting benefits for your bottom line.
New office equipment can be a large – but necessary – expense. Taking the time to consider how you will use the equipment and for how long can help you weigh your options. With this information in hand, you’ll be able to make the best decision for your business.
Not sure if leasing or buying your office equipment is the right choice? Contact us at United Business Systems and let us help you make the best choice for your business.