All You Need To Know About Buying And Leasing Tech Equipment

If your business needs new computers, printers or any other tech equipment, the foremost consideration on your mind will be whether to buy or lease. While both buying and leasing come with their own advantages – depending on the unique requirements of your business, one or the other will almost definitely be a better option. So, what are the pros and cons of each, and which is the best choice for you?

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Leasing Equipment

The first and most common reason for leasing over buying is the fact that technology is advancing all the time, making any tech equipment you have on hand obsolete every few years. With leasing, you do not have to worry about this as you do not gain ownership of the equipment and can easily choose to acquire more upgraded equipment when your lease expires.

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Another huge pull factor for leasing is the fact that it does not require any large upfront payments, something smaller businesses are thankful for. Only requiring a scheduled monthly payment, businesses without a significant amount of cash in hand often choose to lease for this reason. Furthermore, leasing enables such businesses to acquire the most up-to-date technology without digging too deeply into their pockets, killing two birds with one stone by helping them stay on par with competitors. Leasing also enables businesses to manage their finances more efficiently, with predictable monthly payments meaning that there are no unexpected surprises popping up.

The disadvantages of leasing tech equipment are that the cost of monthly payments can end up adding up to more than buying the equipment upfront. Hence, businesses should consider how long they will need the equipment when making a decision. Additionally, leasing is often based on a fixed contract during which you are liable to keep up payments, even if you no longer need the equipment.

Buying Equipment

Businesses that can afford the upfront expense often choose to buy tech equipment for several reasons. Firstly, you have complete ownership of the equipment and are not subject to any rules or regulations, such as a specific way of maintaining the equipment. If the projected profits from the use of the new equipment outweigh the cost of buying it, then it is a no brainer as buying equipment is a simple process that does not require lengthy paperwork unlike leasing.

However, the downsides of buying are directly related to the benefits of leasing: a huge upfront payment has to be made, and businesses will almost definitely be stuck with outdated equipment in the span of a few years. This is why small businesses that do not have a huge cashflow generally prefer leasing equipment over buying them.

When it comes down to it, the choice to buy or lease largely depends on what makes most economical sense for your business. Here at CMS Funding, we have a wide range of tech equipment available for lease, including but not limited to cameras, LED lights, routers and modems. We aim to approve all equipment leasing applications within 24 hours – contact us to see if you qualify for our working capital loans or equipment leasing and financing solutions today!