To Lease or not to Lease that is the Question
Guest Blog from Kirsty Rostron our resident leasing guru.
Business moves fast especially if you are a organisation looking at mobile technology to solve business problems. So when it comes to acquiring equipment of any size shape or form that will enable your organisation to grow and become more profitable there is little time to ponder over critical decisions.
None more so than those of a financial nature, which if made on a whim – or based on the premise that it’s the way things have always been done in the past – could end up having an adverse affect on the business in both the short and long term.
With many businesses looking to convert Capital Expenditure (CAPEX) to Operational Expenditure (OPEX), there is most certainly more of a noticeable trend for these financially astute and progressive organisations to move away from the total and outright purchase of ever changing technology. Rather electing to acquire them via a lease agreement instead.
So why choose to go down this road? Other than the obvious one of keeping expenditure off the bottom line and more money in the bank for those unforeseen rainy days leasing has so many other benefits. All of which you simply can’t afford to ignore. Especially when so many C-Suite individuals have come out as saying that since putting leasing to the test and experiencing the benefits first hand, they would never consider returning to what they did before.
So what exactly are the benefits of leasing?
Leasing delivers a great many financial benefits and the effects are long-term and secure. This helps to provide you and others in the organisation with a more favourable experience when using the newly acquired product. The other benefits may not seem as obvious at first as the financial ones but are no less important and impactful when you consider them in more detail. These are just a handful:
- Choosing to lease means that you get your product straight away rather than when budgets allow. Enabling everyone to start using that much needed device or solution as soon as possible.
- By leasing you are placed into a fixed agreement which remains secure throughout the lease period. You won’t have to worry about changes and unpredictability as the lease option is uncomplicated and safe. This allows you take more calculated risks in other areas of your business.
- Leasing offers you the flexibility to be able to upgrade your enterprise mobility technology at any stage throughout the agreement by simply restructuring the payment schedule. Allowing you to react to rapidly changing market dynamics and steal the march on competitors.
- Leasing is extremely cost efficient. You can offset 100% of the rentals against your tax liability to maximise tax efficiency. Learn More.
- Leasing benefits the future of your business. Cash purchase only secures the fact that you have the product you need, but it doesn’t offer you the long-term benefits that leasing does. Leasing equipment releases valuable working capital for alternative projects within your business.
Key Point: To Lease or not to Lease that is the Question ? Over £2.4 billion of IT equipment was financed in 2012 in the UK alone and it’s estimated that around 90% of The Times Top 100 companies use leasing as a means to acquire equipment and business solutions, so they must be onto a good thing. In fact now that you know a lot more about the benefits, it begs the question. What’s stopping you from experiencing the power of leasing?
For more information and to get approved for your lease Contact Kirsty via the link below.
Talk to us about how we can help you arrange finance to incorporate all the key elements of your enterprise mobility system including mobile application development and rugged handheld devices.