Buying business technologies often costs large amounts of money and results in businesses being left with outdated technology due to lack of funds which ultimately costs the company more in maintenance and repairs than necessary. The alternative to large capital expenditure and large maintenance bills due to outdated technology, is leasing your equipment through a bank or accredited finance house which, according to SME South Africa is the best way to obtain your business technology.
So, if you’re at that stage where its time to upgrade your office technology then take a look at these benefits of leasing equipment before making your decision:
- Your equipment stays up-to-date
When you’re leasing your equipment, you will generally be placed in a 24, 36 or 60 month contract for the equipment that you have on-site, however, don’t let the contract period concern you because you can easily upgrade to the latest technology once you have gone past the halfway mark of your contract term. With the rate of change in technology, even over a 60 month term, you will be able to upgrade to newer technology before your current technology becomes outdated.
- You can predict your monthly expenses
When leasing equipment, you have a predictable monthly expense which makes it possible for you to budget more efficiently. To make it even more affordable for your business and remove the need for maintenance and repairs, with certain technologies such as printers, PABX’s and computers, lessors offer a service level agreement (SLA) at an additional monthly charge over-and-above the lease amount that covers all maintenance and repairs on the equipment.
- There is no upfront capital expenditure
Cash flow is often a struggle in small business environments and leasing equipment adds the benefit of removing the need for any upfront capital expenditure so that small businesses don’t need to tap into their much-needed funds in order to get their business up-to-date with the latest technology and as a result they are able to keep up with their competitors who most likely already benefit from leasing sophisticated business technologies.
- Tax benefits of leasing
When leasing, there is usually a tax benefit associated with it, as a business can deduct their full lease payment immediately, however, as pointed out by SME South Africa, it is important that a tax professional is consulted to understand exactly what the benefit and implications are of leasing technology.
If you would like to get your business up-to-date with the latest and most sophisticated technology, ESAPARTNER offers businesses financing through our very own finance department. To start the process, get in touch with us about what we can offer your business.