When you plan to upgrade or replace your company computer equipment, there are two ways to do it. You can either buy the necessary company computer equipment, or you can invest in a computer equipment lease. There is no hard and fast rule as to which alternative is better, as it heavily depends on the unique situation and needs of your business: internal resources, technology requirements, budget, etc.
Here is an overview of the pros and cons of each, buying versus leasing, to help you decide which type of investment is right for you.
The Advantages of Computer Leasing
When you lease your company computer equipment, the upfront set-up costs are low which allows your business to set aside its money for more immediate, pressing needs within other departments. Plus, your business can ‘keep up with the Joneses’ in terms of having the most cutting-edge computer technology. If new technology that could improve your business operations crops up after you’ve signed your lease, upgrading is a very simple, easy-to-implement measure when computer leasing. In a nutshell: you save money upfront and gain access to competitive technology.
The Downsides to Computer Leasing
Over the long run, you may end up paying more for the computer equipment your company utilizes when you opt for computer leasing, depending on the terms of your contract. With a lease, there’s also the potential issue that the contract may require your business to rent its computer equipment for too long a set length of time. If your business opts to stop using that computer equipment or if its technology becomes obsolete, payments still must be made. The dangers here are, you may end up paying more money than intended if you fail to read your contract thoroughly, or if you fail to anticipate your own changing business needs.
The Advantages of Owning Company Computer Equipment
When you purchase your own company computer equipment outright, there is only one, single windfall to your company budget, as opposed to the incremental payments that come with computer leasing. You can also forgo any complicated paperwork that needs filling out, or contracts which may contain built-in caveats. Furthermore, your company computer equipment belongs to the company, and decisions regarding its maintenance and usage are entirely up to you, rather than an outside entity. Lastly, your purchased computer equipment can be deducted from your business’ taxes. The greatest benefit of this option is the total control you gain over the cost, maintenance, and usage of your computer equipment.
The Disadvantages of Owning Company Computer Equipment
On another hand, investing a lot of money all at once into your company’s IT department may put a strain on your other resources, such as marketing or sales. If your budget isn’t properly apportioned across departments, it may negatively impact your business’ bottom line. Furthermore, when you buy your own company computer equipment, it’s far more difficult to upgrade to the latest computer technologies. You may find yourself stuck, waiting for your recently purchased IT equipment to sell before making a fresh IT equipment purchase, if you decide you’d like to upgrade. Waiting isn’t good for any business. If you don’t have the internal resources to handle the purchase and the upkeep of your own company computer equipment, you may find yourself in trouble.
Depending on your internal resources and how heavily your business relies on the most cutting edge Internet technology, you’ll want to weigh your options carefully before deciding whether or not to lease or purchase your own company computer equipment.
THB provides metrics-driven IT support to companies of all sizes. Give us a call today if you have any questions about leveraging computer technology to run your business more efficiently.