Pros and cons of buying vs renting technology office equipment for your growing small business
Running an office in the 21st century means having to deal with issues of both the digital world and the physical one. Office technology is where both of these worlds overlap.
Namely, while buying equipment is usually a cheaper option, one must consider that even the cutting-edge technology quickly gets outdated. For this reason, there is a live debate on whether leasing technology is a preferable option to buying it or is it the other way around.
All in all, here are some pros and cons of both alternatives.
1. Buying is Simpler
The first obvious advantage of buying is the fact that it is much simpler. You make a list of all the tech pieces you need and then you look for the place that offers the best price. Furthermore, unlike with leasing, there are no terms or special conditions you need to read, understand or keep in mind.
Once you purchase the hardware, it is yours to do with it as you see fit. Sure, there is always a chance that you are entitled to a tax deduction, but this is quite situational.
2. Investing is a Gamble
On the other hand, investing in a piece of tech is always a gamble. While the item you purchase may remain a piece of cutting-edge technology for a while, there is no telling if it will get outdated in just a few years. By that time, most of the latest software may not even be compatible with it, which will make you reinvest once more.
If, however, you decide to lease your equipment, you can state in your agreement that you may replace the item you got with a newer version on your own accord.
3. No need for a Clean Cut
The key to surviving in a hostile environment of the modern business world lies in flexibility. When you come to think about it, why would you have to decide on whether to buy or lease equipment in the first place when you can get the best of both worlds.
For example, you can lease some major tech pieces, such as printers and scanners, while you can decide to buy high-tech Lenovo laptops for your staff. These devices are not likely to get outdated anytime soon, which makes them into a smart investment.
4. Long- or short-term benefits
In the end, the choice of buying vs. leasing equipment also depends on the question of whether you are more worried about the long- or short-term benefits. You see, leasing will give you somewhat predictable monthly expenses and it saves you from having to pay up front. On the other hand, buying means having to pay less in the long run and it means that you will call all the shots when it comes to maintenance. Either way, both of these methods have something to offer and it all comes down to things like personal preferences and your company’s current financial standings.
As you can see, there is no clear answer to the question of what is better. In a situation where money is not an issue, buying new equipment every year (or even every several months) would be a solution that gives you the greatest efficiency. However, in the real world, there is no scenario in which money is not an issue. For this reason, you need to take all of the above-mentioned into consideration and pass your verdict as wisely as possible. The future of your business may depend on it.
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