One of the attractions of leasing computer equipment is to keep up with the latest technological advance in computers. There a lot of companies that have many old computers and old software. But with leasing a company can have the newest computer equipment and update when the lease ends.
The features of leasing are tempting too: financing is 100%, options to buy normally 10% or one dollar, there are tax deductible plans, the monthly fees are fixed, conserve cash flow and bank lines, and you are making payments as the computers and peripherals are making money for you.
The rate of obsolescence for computers is every three or four years. When you are leasing it is convenient to get new equipment or to enlarge the number you are leasing. You don?t have the responsibility of upkeep, and you don?t have to put up as much security as when you buy.
A given company leases around forty percent of its computer equipment and eighty percent of companies in the United States lease part of their equipment. Computers are use in large and small businesses. Leasing is the best option because it releases capital for other expenses, the business owner?s credit isn?t harnessed for the equipment, and he can upgrade his equipment more often.
Leasing it can get specialized computer equipment that the company couldn’t purchase. Leasing it might require higher payments because the particular equipment depreciates quickly, but this expense is offset by the company?s credit being freed up. When leasing the company gets the advantage of a smaller down payment, less interest, and leasing gets a speedier approval than borrowing. There is a tax benefit because the monthly fee is thought of as operating costs.
Some people have heard of renting computers and might wonder what is the difference. The renter pays a fee that is much less than the costs of buying a computer. He gets a computer (s) to use. He?ll rent the computer for the time he needs it, which is short term. Short term could be a week, a few weeks or several months. The difference is that when he leases a computer (s) it is for a longer term like a year or several years. Also, he can?t go back on the agreement without suffering a penalty. Normally, technical support is provided and he has the option to rent to buy.
If your company needs to lease notebook computers, check with the big computer companies such as Dell, Sony, Acer, Toshiba, Apple, or HP. There are numerous Internet sites that do business in leasing laptops. When you do a search for laptop leasing thousands upon thousands of results occur.
There are great advantages to leasing your computer equipment for your business. There are numerous choices too. Always compare several choices and when you pick a computer leasing company read the fine print before signing the agreement. You can save money, use your credit line for other business needs, and get obsolete computers replaced easily when you lease them.
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Jay Murton is a well-known business writer who has been active in the business community for more than thirty years. He is currently exploring Computer Equipment Leasing.See more articles about Asset and Equipment Leasing here.