The next time you begin to consider acquiring technology equipment such as computers, servers, networking equipment or other items, you will probably be approached with a decision…do I lease or rent (called Hardware as a Service or HaaS) this equipment or should I just purchase it outright? Let’s focus on some of the benefits of leasing or renting (HaaS) and why it’s a smart idea for today’s business.
- Leasing/Renting allows you to keep your network up to date. The reality of technology is that it eventually becomes obsolete…with technology especially, your equipment degrades while at the same time the demands on your network increase. By leasing or renting your equipment, you pass the financial burden of upgrading a network over to the financing company.
- You’ll have a predictable monthly expense. With a lease or a HaaS agreement, you have a predictable monthly payment. This allows you to turn your IT spending into an operating expense and hold onto your valuable cash. Utilizing leasing or HaaS will also simplify your budgeting process.
- You pay nothing up front. Many small businesses struggle with cash flow and must be very careful when evaluating capital investments. HaaS agreements require zero upfront cash. In a lease you may be required to put down a security deposit, but it is refundable on the backend of the lease. The flexibility of these financing tools allows you to preserve your bank lines of credit.
- Leasing/Renting HaaS gives you a competitive edge. Leasing/Renting Hardware as a Service can allow your business to invest in better technology than you might have otherwise invested in. This will lead to higher levels of productivity in your business.
- At the end of a lease/HaaS period, you have multiple options. Most leases and HaaS agreements are 36 months. Your options at the end of the lease/rental period are as follows:
- You can return the equipment with no further obligation.
- You can purchase the equipment.
- You can continue renting for as long as you desire
As you analyze the ongoing technology needs for your business, it is wise to consider leasing or renting your equipment. The age-old adage is very true; you purchase items that appreciate and you lease/rent items that depreciate.
Invite the professionals at Connecting Point to consult with your business to help you make informed financing decisions about your technology.