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Andrew loves computers and the way the market is evolving to a 'pay as you go' model against the old methodology of CapEx spending. A background of sourcing lease financing for Start Up businesses means he is perfectly place to provide insightful commentary on computing for new businesses.
If you are considering buying IT equipment, such as tablets or laptops, for your school, you’ll be looking for the best deal for your funds. You may be surprised to learn that leasing is actually cheaper than buying and there are more advantages to leasing too. Such as:
- It frees up your capital – when you lease your IT you don’t have to use your capital funds as a lump sum to purchase them, or upgrading at a later date. Being able to spread the cost enables you to use your funds elsewhere and payments can be deferred to suit your needs.
- It comes with technical support – you will have access to our technical support team throughout the period of your lease. Our technicians are trained to an extremely high standard with expert authorisation and knowledge on both Apple and PC platforms. We are available to assist you with synchronising and maintaining your devices from the moment they are delivered.
- Free training is available – if you or your staff require training on your Apple iPads or laptops, or need some advice on the best apps to use in education, one of our qualified trainers will come to your school and deliver a program of training – FREE of charge – which will be tailored to your needs. This can cover iPad basics, right through to specifics of education related apps, Once your trainer has visited you, they will continue to work closely with you in order to ensure your iPads are fully utilised in the classrooms.
- Accidental Damage Insurance – each lease to a school has specialist comprehensive insurance cover. This means that any Apple iPad or Windows device you have which is accidentally damaged, will be fixed or replaced at no cost to your school. It costs around £150 to repair the screen of an iPad which has been dropped, but with our insurance you are covered and will NO excess to pay.
- You get a full 3 year warranty as standard – all Apple iPads that you lease will come with a 3 year warranty so that you’re covered. Should you have an issue with an iPad, we will swap it for a replacement to ensure you have the minimum of down time at no additional cost to your budget.
- Renewal and Upgrade at the end of lease – at the end of our normal 3 year lease term we will provide you with the option to return the iPads you have and cancel the original lease, provided that you take out a new lease on the latest iPads. You can keep the original iPads if you choose to do so, however there is a small fee payable in order to do this.
Here at HardSoft we offer operating leases to schools which are recommended by the Department for Education. When you choose to lease from HardSoft you will be benefiting from the experience an expertise of an IT company with 30 years of trading and dealing in finance.
- Organise paperwork
- Supply your equipment
- Install the equipment and train staff as necessary
- Provide expert technical support for the duration of the lease
- Manage any incidents of broken, damaged or lost equipment
If you think that leasing IT equipment would make sense for your school, give our Head Office education team a call on 020 7111 1643, they will be happy to advise and arrange a quotation for you tailored to your requirements.
At Hardsoft, we have more accountancy firms among our clients than any other type of business. When it comes to the financially-savvy, accountants are a class apart, so who better than an accountant to provide an expert opinion on leasing computer equipment?
In order to shed light on what can be a potentially confusing area, we’ve spoken to chartered accountant Tony Crisp, a partner at Harlow-based accountancy firm Giess Wallis Crisp LLP. With over 40 years’ experience advising small and medium-sized businesses, GWC cover the full range of general practitioner services including accounts, audits, taxation, book-keeping and payroll for corporate clients, sole traders and partnerships.
Here, Tony answers our questions about the financial pros and cons of leasing business computers.
Why do so many accountancy firms lease their computers?
Tony Crisp: “From an accountant’s point of view, leasing is attractive for two main reasons. Firstly, it’s the lack of upfront deposits and payments. Leasing is a low-cost way of acquiring capital equipment, like computers, without an immediate cash outlay, which you would get if you bought them outright. And even with a hire purchase arrangement, usually there’s a fairly substantial deposit upfront. So cashflow is one of the most critical things.
“The second reason is that accountants like consistency and evenness with their finances. Leasing allows you to spread the cost of an asset over its useful life, so as the asset you’re using pays back to you, you’re paying out to purchase it nice and evenly. There’s no big monetary outlay followed by several years of payback, instead the outflow of money is evenly spread along the same lifetime as the asset.”
Do you recommend computing leasing to many of your clients?
TC: “Yes, generally we do, particularly from a financial point of view. What’s good for us is good for them in most cases. The lack of a significant upfront payment followed by the even flow of the cost is equally attractive to clients. It introduces flexibility that isn’t always there with loans, so yes, it is something we would recommend for that reason.”
How much money can a business save in tax by leasing their computers?
TC: “The reality is you don’t save any tax, but what you do get to do however, which is equally important, is to defer and spread the tax. You get tax relief whether you buy computers outright, buy them on hire purchase or buy them through a lease, but it’s when the tax relief is given that makes the difference.
“With computer leasing, tax relief is given evenly throughout the life of the lease. On the other hand, with an outright purchase, you get all the tax relief upfront but then none in the following years. Leasing provides an even spread of tax relief as opposed to peaks and troughs, which small and medium-sized businesses don’t always cope with well. It’s much easier to allow for an even spread of anything, so that’s what I like about the leasing tax relief approach.”
Is computer leasing easier to do than a lot of people think?
TC: “Oh, absolutely. Hardsoft make it very easy to lease computers and it has the added advantage that your technology is up to date. These days, the amount of hacking that goes on means that if you don’t have up to date hardware and software, you are vulnerable.
“Computer leasing generates a more regular updating of equipment at a spread-out cost than when businesses buy them outright. The way Hardsoft enable businesses to lease computers, you avoid the obsolescence of old kit a lot more easily.”
Are there any other advantages to leasing computers over buying them?
TC: “Securing a loan from a bank can be tricky for small to medium-sized businesses, and leasing contracts can be easier to obtain, more flexible and quicker to arrange. It can be easier to get a leasing contract than it is a full-blown loan arrangement if you’re buying a lot of kit at once.”
Are there any disadvantages to leasing computers?
TC: “It could be argued that the lack of a fixed asset on your balance sheet is a disadvantage but I think that’s pretty marginal. Generally, computer equipment isn’t high enough in value for that to be a significant disadvantage.
“Other than that, if a business particularly wanted upfront tax relief, then computer leasing may not be best option. They would have to buy the equipment and own it, which you generally can’t do with most straight, off-the-shelf leasing arrangements, as you don’t ever own the asset. I think those are probably the only two disadvantages there are.”
Can any business benefit from leasing their computer equipment?
TC: “Yes, absolutely. I don’t think there are any particular niches or market sectors that have an advantage or a disadvantage over any others, so no, I think it can apply to all. And all the advantages of computer leasing would apply to all.”
If you’d like to find out more about how computer leasing could benefit your business, please don’t hesitate to get in touch with us today on 0207 111 1643.
We all know just how quickly technology moves on. In this day and age children are always looking for the next video game console or smartphone (and let’s be honest, most of us adults are too), but as soon as you buy one Xbox or iPhone a new and improved version is announced. And then it’s on to the next thing. It can certainly be hard to keep up.
It sure can be expensive, too. In the same way that a new car depreciates in value as soon as you drive it off the lot, the truth is that technological equipment suffers the same fate. It’s expensive enough to buy new, but when you factor in that you’ll probably have to buy the next ‘thing’ soon after, while getting nowhere near what you paid for it if you try and sell, then bank balances are bound to be stretched to near breaking point.
For anyone managing a school’s finances, you’ll know all about the trials and tribulations of maintaining your technological equipment on a tight budget. So instead of buying, just why is leasing PCs, laptops and other equipment a more beneficial choice for schools?
Your school will always be up-to-date
Not only will technological equipment become outdated, it will eventually become obsolete. This could mean that the computer programs school children are using to work on may not even exist in a year or two, leaving them needing to learn entirely new practices when moving on to the next educational level.
When you lease, you ensure that your school completely skips the financial strains which obsolescence presents as the burden remains with your equipment leasing company. So if you find you’re stuck with 100 plus PCs, laptops or Macs that are falling behind the times, you can simply upgrade to the newest and fastest equipment as soon as your existing lease expires, all at a price that suits your budget.
From the Macbook Air to the latest HP Probook 450 laptops, the Lenovo Thinkcentre to the new, thin iMac, it couldn’t be easier to keep up and ahead of the times. Hardsoft offers you the opportunity to renew your lease with options to return or retain your old equipment, too, so you could even sell on the equipment you’re looking to replace.
Your school’s expenses are predictable and easily manageable
When planning a school budget you always have to account for the repairing and maybe even replacing of your technological equipment. The financial woes are not true for schools who lease, as instead they have a pre-determined monthly fee which often includes equipment maintenance.
If you were to buy a line of Apple Macs from Apple directly, your warranty would only be for one year, with the possibility of extra options. Hardsoft, on the other hand, offers inclusive warranty and support for three years, plus enhancements for loan units and insurance.
Fixed weekly or monthly fees allow you to best utilise your budget in other areas, so when it comes to your technology just leave it to your leasing provider.
Your school will always be ahead of its rivals
Leasing can enable your school to acquire the most sophisticated equipment available within your budget, allowing you to stay ahead of the game and rival schools without draining your financial resources.
You may even consider leasing technological equipment that your school hadn’t considered before. For example, Hardsoft has teamed up with Apple to offer iPad leasing packages for schools. These packages can be completely tailored for your school, and all of them come with an Apple Learning Lab – a unique and innovative piece of equipment allowing you to transport, charge and manage up to 30 iPads at once using the Apple Mobile Device Management system. As it’s so convenient to move the iPads around and charge them, you may only need one iPad package to cater for your entire school body.
Many schools are already benefiting from some of the amazing leasing packages that are available. If you need any help or advice, do get in touch on 0207 111 1643 or email Hardsoft at email@example.com.
Sharia Law is an umbrella term for Islamic religious law, or path to follow. It deals with a variety of social, economic and political matters. In economic terms, to charge interest (the Islamic term for interest is ‘riba’) or to be charged interest, whether you are a company, bank or individual, goes against Sharia law and is therefore strictly forbidden. Adhering to Sharia law means that a lot of financial services in the UK are off-limits.
In 2004, it was recognised that the demand for Sharia-compliant finance was worth around £4 billion. As a result, over the past decade in particular, banks and companies in the UK have been developing ways to ensure their financial agreements, such as the taking out of mortgages, are Sharia compliant.
This is where HardSoft Computers steps in…
According to the Islamic term ‘ijara’ as stated under Sharia Law, which quite literally means ‘lease’, we are pleased to say that our lease agreements are Sharia-compliant.
In a lease, or lease agreement, the company or bank in question essentially purchases the desired product for the customer and then leases it back to them for a set price over a specific amount of time. This product might be a house, a car, or in HardSoft’s case, it’s computer equipment. The lessor makes a profit by leasing back the product for a slightly marked-up price. No interest is charged on the instalments paid by the lessee, however, and therefore the agreement is completely Sharia-compliant.
HardSoft have been established for over 25 years, so we have a lot of experience in the leasing of IT equipment. Authorised by Apple we are able to lease anything from Macs to PCs to printers to software. What’s more, we are able to lease to start-up as well as established businesses. Our lease agreements are also incredibly flexible, hence our aptly named Flexi-Lease. Essentially, we purchase the equipment you desire and then lease it back to you over a three-year period. However, after just two years you are given the option to take out a new lease whilst we pay off the old one, get some new equipment and arrange your new lease payments according to whether you want to keep the old equipment or not. This allows your business to remain constantly up-to-date in terms of IT. Alternatively, if you decide to continue with the three-year lease you are given the option to purchase the equipment for a small fee at the end of the agreement – again, this is permissible under Sharia law because the monthly payments have partly attributed to this final purchase.
We don’t just lease to businesses. Our 0% finance for home users means that you can lease the latest Apple MacBooks and iMacs from us without paying any interest, therefore making it Sharia-compliant. HardSoft computer leasing includes three years warranty and support plus the unique option to cancel and return the Mac after 2 years without penalty or renew into a new lease for new kit. Leasing computers is similar to a mobile phone contract.
If you have any more questions on Mac leasing with HardSoft then visit our website at www.hardsoftcomputers.co.uk for more information or feel free to contact our sales team on 0207 111 1643. All products shown are rentals and agreements do not have or show an interest charge, so get in touch today to lease a Mac.