The When and How of Leasing Tech Equipment

From computers and heavy machinery to complete offices, just about anything can be leased. The type of equipment you are considering and the kind of business you have are major factors in determining whether to lease or buy.

If you’re starting a business and need just one computer for yourself, it probably makes more sense to buy. On the other hand, if you’re opening an office with several employees, and you need a dozen computers, you may want to look into leasing.

According to the Equipment Leasing Association of America (ELA), approximately 80 percent of U.S. companies lease some or all of their equipment, and there are thousands of equipment-leasing firms nationwide catering to that demand.  RentAComputer.com is one such business that can assist business owners in the United States, Canada and numerous countries in Europe, including Great Britain.

An ELA spokesperson explains that “Leasing is an excellent hedge against obsolescence, especially if you’re leasing something like computer equipment and want to update it constantly.”

Some leasing advantages in addition to frequent upgrades are lower monthly payments than a loan, a fixed financing rate, tax advantages, conserving working capital funds and gaining immediate access to the most current business tools.

Answer these quick questions when you put together an equipment leasing wish list:
1.  What equipment do I need and for how long?
2.  What do I want in my lease contract:  bundled services, supplies, training and equipment?
3.  What are my company’s future needs so I acquire adequate equipment now?
4.  What is my total payment cost?

Questions to ask your Tech Travel Agent when getting a quote for leasing equipment:
1.   Will you be the only Tech Travel Agent I work with?
2.  How long has RentAComputer.com been in business?
3.  What company will be financing my lease?
4.  Will you make sure I understand the terms and conditions during and at the end of the lease?
5.  Is casualty insurance (required to cover damage to the equipment) included?
6.  Who pays the personal property tax?
7.  What are the options regarding upgrading and trading in equipment before the lease period expired?
8.  Who is responsible for repairs?

Every lease decision is unique, so it’s important to study the lease agreement carefully. Do your homework and determine what is best for your company both technologically and financially. Because start-ups tend to have little or no credit history, leasing equipment is often difficult or even impossible. However, some companies will consider your personal, rather than business, credit history during the approval process.  Be prepared to provide as much information as possible so your Tech Travel Agent can assist you in the best way possible.