When it comes to obtaining new office equipment, you have a big decision to make: is it better to buy it or lease it? Both options have benefits and drawbacks that could have consequences for your bottom line. Before you spend your money on new equipment, consider these factors.
1) Your Financial Status
Buying a large piece of office equipment outright is a large upfront expenditure that is cost-prohibitive for many companies. Before considering buying anything, you need to look at your cash flow and budget and see if it is a feasible option.
With a lease, you can have a predictable monthly fee – but overall you will likely pay more than a direct purchase. It’s important to look at both your short- and long-term financial outlook to determine what option will be the most cost-effective.
2) Expected Return on Investment
Modern equipment has so many features to offer, many of which can bring significant new functionality, as well as cost savings and efficiencies, to your company. However, these valuable features increase the cost of the device – and it may cause you to settle for something that is “good enough” if you are buying outright.
Because leasing spaces your payments out over time, it may be possible to get a better device without significantly increasing your monthly expense. Ultimately your return on investment may be worth the extra expenses leasing can bring.
3) Expected Lifespan
The lifespan of equipment is determined by several factors, including durability, how fast the technology will become outdated, and how long your company needs it for. The lifespan should also factor into your analysis of if buying or leasing will serve your company better. Items that have a longer lifespan (and may also have a better resale value) make more sense to buy, if you can afford it. Something which needs to be upgraded more frequently, may be better to lease.
Office equipment is a large investment. Either you can pay for it upfront by buying it outright, or space your payments out over time as a lease. It’s important to carefully look at a variety of factors to be sure you make the right choice for your business. To learn more, contact us at PrimeEdge Technology and we’d be pleased to answer any questions you may have.