Leasing – for greater flexibility
Today’s businesses are under enormous pressure to innovate in order to maintain their competitive edge. To meet this need, an ever greater number of enterprises are opting to lease the latest and best IT equipment: from telecommunications systems, to servers, to notebooks.
What advantages can leasing offer you?
When you purchase IT equipment outright, it has a typical depreciation period of five years. Leasing accelerates the effective tax-related life cycle, allowing you to keep your technology fresh. By allowing you to introduce new systems at an earlier stage, leasing makes you more responsive to ever-changing market imperatives. This translates into far greater flexibility, not only in terms of technology but more importantly in terms of your finances.
What’s more, if you lease, you avoid tying up valuable capital.
This is especially important for companies that need to maintain relatively high liquidity. Whereas previously you may have felt forced to continue to use the equipment for longer than really desirable, when you lease you are no longer tied to lengthy depreciation periods.
Advantages of leasing:
protects liquidity
protects credit lines
offers regular, predictable instalments
offers tax advantages, as the instalments are included under operating expenses
enables capital expenditure, even in difficult economic circumstances