Some companies use the leasing of IT equipment to reduce their investment costs. A lease is a rental agreement where the owner of the equipment allows the user to operate or make use of the equipment in exchange for periodic lease payments.
Leasing of IT equipment is a very popular option among companies of all types and sizes, but particularly for small companies that have limited capital for the purchase of new equipment.
This type of IT lease is preferable when the company needs some equipment for a short period of time.
There is a type of lease called "non-cancelable" or "long-term" with this lease the company can finance its IT assets and at the end of the lease period can acquire and use the asset. However, the lessee is responsible for maintaining and insuring the asset and paying all corresponding taxes.
With this type of IT lease, companies can purchase expensive equipment without initial capital outlay.
Small business owners should keep in mind that the lease rates are different for each lessor and may also charge different fees for the same equipment depending on their characteristics.
The main reason for leasing is the cash flow and the ability to obtain the necessary equipment for the company at the moment without an immediate cat. For some companies, the use of leased equipment in the short term allows them to exchange new and better equipment more quickly without being affected by a depreciation of the asset.
Some leasing benefits are:
If your company is renting or leasing an asset, you can deduct your monthly costs as a fixed expense.
This system represents an excellent option for those assets that depreciate rapidly or become obsolete.
Leasing also allows you to allocate the capital of your company in other sectors to generate its growth and invest in other goods, also prevents you from decapitalizing for a larger purchase.