The Advantages of Leasing IT Equipment

Posted on Feb 22, 2021 by Scott Crandall.


Given the speed at which technology develops these days, buying IT equipment outright can be counterproductive for companies. Not only does purchasing usually require significant capital expenditure, but frequent software updates also increase the risk of your expensive new hardware becoming less efficient — or even obsolete — sooner rather than later. Partnering with a provider to lease the equipment instead allows your company to reduce this risk while enjoying a number of other benefits.

Financial Advantages

Choosing to lease your IT equipment instead of buying it delivers significant financial advantages. Companies can reduce the total cost of ownership, have better control over cash flow, conserve working capital for business initiatives, and keep their lines of credit intact. Leasing seldom requires a downpayment and depending on the type of lease structured all rentals may be fully tax deductible.This method of financing reduces the liabilities listed on your company’s balance sheet.

Equipment financing also hedges your inflation risk, according to the Equipment Leasing and Finance Association, by locking in the interest rate on the day of closing. When inflation devalues the payments over time, the difference is absorbed by the finance provider.

Staying Updated

Leasing offers a built-in renewal strategy for your IT assets, thanks to the option to upgrade equipment more regularly than if you were to purchase outright.

This enables your company to take on new and diverse business opportunities without the concern that current equipment doesn’t have the right capabilities. Companies leasing IT equipment also benefit from lower maintenance and support costs, which the equipment typically incurs as it ages.

Well-timed refresh cycles help enterprises to limit obsolete equipment while increasing employee efficiency and giving them the facilities to work effectively.

Flexible Choices

Businesses often need a combination of different equipment brands for their IT requirements. It can be challenging to source brands from multiple suppliers, but leasing offers a seamless alternative. Companies provide their equipment criteria to the finance provider, who can usually arrange to purchase the equipment from a number of different manufacturers for a monthly payment against a single lease agreement.

Asset Disposal

Getting rid of old IT equipment, which is classed as hazardous waste in many states, can be particularly difficult if companies have large quantities of it. Leasing equipment provides you with an easier way to dispose of old assets when they’re no longer useful as a good leasing provider should also handle equipment removal and disposal. The lessor should be responsible for all costs of removing and disposing of equipment in accordance with local, state and federal environmental compliance laws.

A Viable Solution

Leasing IT equipment offers multiple advantages for companies of every size and resolves most of the challenges associated with capital purchases. It enables you to maintain the high hardware standards required for your company systems and delivers both cost savings and efficiencies over the long term.

If you’re ready to explore the benefits of your company’s future IT equipment leasing requirements, contact Axelerist to discover how we can help.


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