Why Leasing your Tech Assets is Better than Purchasing

That’s why it is more important than ever to make sure that your technology investments in utilizing new equipment are cost-effective and meet your long-term needs. In this blog article, we’ll highlight the benefits of leasing vs. purchasing a technology asset, as well as provide tips on how to choose the right asset for your business. We hope that this information will help you make the best decision for your organization. 

What to consider while purchasing or leasing a tech asset?

Technology is constantly evolving and changing, which means the demand for new and better technology assets is a constant part of a business’s operating expenses. But before making a purchase or lease decision, be sure to research different options and create a plan that best meets your needs. Additionally, be aware of the purpose of the asset and its capabilities so you can better understand the future potential of the asset. Not to mention the maintenance costs you need to do in order to keep your equipment in tip-top shape. Additionally, be sure to negotiate the terms and conditions of the agreement carefully while also considering the financial situation of your business in order to get the most value for your investment. Some firms offer flexible and long term lease agreements. 

Pros and Cons of Various Types of Technology Assets

Technology assets can be advantageous to businesses in numerous ways. They can help a firm generate a source of high return on investment (ROI), and can be used to speed up the design and development process of products or services they offer. However, tech assets are also relatively fragile, and can improve in a snap of a finger. Even though your current equipment is still in mint condition, another fresher, better, and more powerful device is ready to take its place. 

The disadvantage of technology assets is that they can be expensive to purchase, and monthly payment schemes for a number of years can exceed the cost of the asset itself. Another consideration is the fact that the lease agreements may offer more flexibility when it comes to using the equipment.

The Big Question: Cost of Ownership vs. Cost of Use

When it comes to making decisions about products and services, it’s important to think about the cost of ownership vs. the cost of use.

Cost of Use

The cost of use is simply what you pay for using a product or service – this could be monthly fees, usage caps, or specific charges based on how much you use a particular resource. 

When making a decision about whether to purchase or lease an asset, it is important to think about what will be cheaper in the long run — purchasing an asset outright could be more expensive in terms of payments but it would also save on ongoing costs such as repairs and maintenance.

Cost of Ownership

The cost of ownership includes both the initial investment and ongoing costs associated with a product or service. These include things like depreciation and maintenance fees. In order to make the right decision, it’s important to understand your needs and what’s best for you.

Considerations for Purchasing or Leasing an Asset

There are a number of considerations that need to be taken into account when purchasing or leasing an asset. These include things like the cost of the investment, ongoing costs, and how long you plan to use the product or service. Last but not the least, is depreciation. Consider depreciation and how much it would impact your operations. Outdated IT business equipment is susceptible to errors, breakage, and even hacking. Plus, give your customers the image that you are prioritizing your online safety by keeping their personal information away from hackers’ hands on your new equipment.

Don’t waste your money: Tips for Selecting the Right Technology Asset

Technology can play a pivotal role in the success of a business. However, its important to choose the right asset for the right situation. Here are some tips to help you make the best decision.

Assess. Evaluate  your current situation. Are you still a small business, or are you growing in terms of sales, employee count, and the need to expand the valuable real estate.

Consider the needs of your teams. How are they performing with the business equipment you currently possess? 

Consider your monetary status. Will you be able to afford to acquire new equipment? Will it help your business’s operations if you will consider renting instead of buying?  How about the budget for renovations on your office on a commercial property? (if you’re considering implementing office cubicles and to tailor fit your IT infrastructure to your current office)

The Benefits of leasing your tech assets may include the following:

Leasing may be advantageous when you have a short-term need for the equipment, but do not want to commit to purchasing the equipment outright.

Leasing can save you cash when buying equipment outright would cost more than leasing.  The equipment lease term may be longer than the purchase period of the same equipment, allowing you to use the equipment for a longer period of time without having to incur additional costs.In some cases, financing options may be available through leasing companies that provide lower interest rates and extended terms than those offered by traditional lenders.

But, these are the REAL benefits of leasing your tech assets!

Flexibility. Now, you have the ability to upgrade your tech equipment without incurring huge additional costs and the potential to earn a return on investment.

Customizable. Your lease payment can be customized and adjusted according to your financial capacity. Embrace business growth today, without worrying too much about your company’s working capital.

Hassle-free. Ownership of the asset gives you a lot of things to do that make you won’t even think about disposing of your pre-owned tech equipment, we will take care of it all during the end of the lease. Now that’s a big advantage of leasing equipment.

To lease or not to lease? That is the question.

When it comes to buying or equipment leasing, it’s important to consider a variety of factors. This article has outlined the different pros and cons of leasing versus buying your technology assets in order for you to formulate a strategic and informed decision. 

Finacore offers flexible leasing terms to aspiring organizations. Leverage your team’s capability by empowering them with the latest and the greatest in tech. Reach out to us and let’s discover possibilities.