Benefits of Computer Leasing For Your Business

23rd July 2021
Meeting benefits of computer leasing

Improve Your Operations By Leasing Business Computer Equipment

Did you know that leasing your computer equipment can yield a variety of financial advantages for businesses?

There are now numerous ways for businesses to lease IT hardware. These packages can boost flexibility and employee performance for your company.

So, what are some of the ways that leasing computers can benefit businesses?

Benefits Of Business Computer Equipment Leasing:

  • Better Cashflow
  • Tax Benefits
  • Access to the Latest Tech
  • No Obsoletion
  • Increased Productivity
  • Higher Quality Work Output
  • A Boost in Revenue
  • Greater Operating Flexibility
  • Management Support
  • Maintenance Support
  • Strategic Support
  • Multiple Options of Flexible Packages

The Advantages of Leasing Computer Equipment Explained

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  1. Better Cashflow – When leasing, businesses spread the cost of their IT hardware. Instead of paying a large amount in bulk to own the devices outright, you pay smaller monthly payments. It’s like having a subscription for devices. This reduced a business’s short-term costs, so there’s no big bulk spend at once. The result is that companies have predictable, plannable expenses. The stable cashflow allows businesses to make other, more profit driven purchases, such as additional software, or launching marketing campaigns.

2. Tax Benefits – In addition to better cashflow, leasing offers tax benefits. What you do pay is tax deductible and functions as an OPEX (operating expenditure.) The leasing company retains ownership, and, for tax purposes, the equipment is considered a monthly operating expense rather than a depreciable asset. Operating leases are useful because they don’t tie up funds and the leases are frequently short term e.g., three years or less.

3. Access to the Latest Tech – When leasing business computer equipment with a reputable supplier like Hardsoft, companies get access to the very latest tech. Many leases are short, about three years and then you can start a new lease and have more new IT devices. It is, therefore, easy to outpace your competitors with new, better, faster IT technology.

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4. No Obsoleting – Since leases are short and grant access to state-of-the-art technology, your business need not worry about obsoleting. Some leases even have upgrades inbuilt, so you never have to put up with old slow machines.

5. Increased Productivity – Without the problem of obsoleting, you should see increased productivity. New computer tech is faster and better performing than old gear. It enables your staff to work better and suffer less downtime from old machines. It also makes them happier and feel valued. Their jobs will be easier and, therefore, productivity should increase to the benefit of your business.

6. Higher Quality Work Output – High quality computer hardware doesn’t just increase productivity. It can actually improve the quality of your employee’s work. With access to the best software, apps, and compatibility with other devices, you should see your staff able to produce their best work possible.

7. A Boost in Revenue – It may sound odd or a stretch to say that leasing business computer equipment can boost revenue but it’s true. When productivity and quality of work output are raised, there is a big opportunity to increase profits. With higher productivity and better-quality work, your business can attract and retain happier customers. This widens your appeal, demand, and the ability to deliver on that increased demand. Since leasing computer equipment can boost productivity and output by giving access to the latest technology, it can, naturally, lead to more profit.

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8. Greater Operating Flexibility – Some computer equipment leases offer options for swapping or upgrading the number or type of device you are leasing. This allows for a huge amount of flexibility in your day-to-day business operations. If staff leave or more are on boarded, then a change in the number of devices is required. If an employee role changes or different tactics are needed in the business, a different type of device might be better. In the case of the pandemic, the easy swapping of desktop computers to laptops would have made operations much smoother for nearly all businesses. This quick swap of devices is extremely costly and logistically challenging when you buy hardware outright. However, in many leasing solutions, this can be easily arranged. In fact, some leases have this flexibility built into the contract.

9. Management Support – Managing devices correctly is crucial in a business setting. There are added security risks and consequences for breaches in a workplace. With home working and remote working, this problem is exaggerated. In a leasing solution, your supplier can be responsible for the ongoing management and security of your machines and even continue management remotely for home workers. HardSoft can help you set up an MDM (mobile device management software) to manage corporate devices and what apps and data they can access more proactively.

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10. Maintenance Support – All computer equipment requires maintenance over the lifespan of the device. This is especially true for business computer hardware since it must run efficiently. If you buy computer equipment, then all responsibility for maintenance sits with the business. However, your leasing suppliers can assist with maintenance.

11. Strategic Support – With certain leasing packages, from knowledgeable suppliers, you gain access to their knowledge and expertise in IT hardware. With leasing solutions such as Device as a Service, you can benefit from strategic advice in the acquisition, deployment, and application of your devices. Your company might not know which devices will best suit your changing needs and suppliers can aid in this strategic decision.

12. Multiple Optionsof Flexible Packages – Leasing is no longer a one-size-fits-all philosophy. There are numerous packages that allow the lease to suit your equipment goals and business objectives. You can work towards ownership of devices in your lease, or you can just rent the computer equipment for as long as you need it. Alternatively, you can change up leases to always have access to the newest tech.

Guide to Leasing Computers for New Startups:

  1. Determine Your Needs: Before you start shopping for leased computers, it’s important to determine your business needs. Consider factors like the size of your team, the type of work you do, and the software you’ll need to run your business.
  2. Research Leasing Companies: There are many leasing companies out there, so it’s important to do your research and choose a reputable company. Look for a company that offers flexible payment options, good customer service, and a range of equipment options.
  3. Compare Lease Terms: When comparing lease terms, pay attention to factors like the length of the lease, the monthly payment, and any fees or charges associated with the lease. Make sure you understand the terms of the lease before signing any agreements.
  4. Consider Upgrades: Technology is constantly evolving, so it’s important to consider whether you’ll need to upgrade your leased equipment in the future. Look for a leasing company that offers easy upgrades and flexible lease terms.
  5. Understand Maintenance and Support: When you lease a computer, the leasing company is often responsible for maintenance and support. Make sure you understand what kind of support you’ll receive and how to get help if you have any issues with your equipment.
  6. Negotiate Terms: When you’ve found a leasing company that you’re interested in working with, don’t be afraid to negotiate the terms of your lease. You may be able to negotiate a lower monthly payment or better lease terms if you ask.
  7. Read the Fine Print: Before signing any lease agreements, make sure you read the fine print and understand all the terms and conditions of the lease. This will help to avoid any surprises down the road.

The Journey From Buying To Leasing Computer Equipment

Many businesses do not realise that leasing computer equipment, rather than buying it outright, can deliver a host of financial, operational and productivity benefits.

With the right provider and package, leasing can also be incredibly easy, straight forward and allow a no hassle approach to their hardware.

What was once only required by certain industries and certain staff is now a necessity in any role you can fathom. Computer equipment and IT devices, such as tablets and smartphones are a necessity in the workplace for every individual.

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Traditionally businesses would buy their IT devices in bulk and pay outright to own them. Despite this being an age-old way of sourcing hardware, it’s inefficient and costly.

With hardware technology advancing faster than ever, machines become outdated rapidly, which is why buying computer equipment no longer provides the longevity or value for money that it once did.

Leasing and subscriptions are now the norm for most services, hence leasing in general has become easier and less convoluted.

With the right supplier, signing up for a lease is seamless, swift and grants access to many additional benefits, such as maintenance, management, and strategic support.

Alleged Benefits of Buying

Some businesses still believe that buying computer equipment has benefits. This belief pervades in companies because buying is merely the way it’s always been. It can take time for busy managers to change the way of sourcing equipment since it is unfamiliar.

However, many of the supposed benefits of buying aren’t true. With experienced providers like Hardsoft, many of the perceived drawbacks of leasing don’t hold true.

Some of the so-called advantages of buying are:

  • That’s it’s cheaper overall – This is partially true but doesn’t mean much when you consider the lifetime value of a device and how disruptive to short-term cashflow buying can be. Leasing spreads the cost, which means you can make other important short-term purchases that will drive more profit to the business like a new hire, new software, or a new campaign. Bought equipment will also become obsolete very quickly. Tech is advancing too fast for a business to hold onto outdated machines for years on end. These slow, outdated pieces of kit actually lose money for the business, in terms of productivity and lack of compatibility. The result is that leasing will actually save you a lot of money over the long term.

  • That you’re obligated to pay in a lease, even if you stop using the equipment – As we’ve said before, not all leases are the same. Hardsoft has developed hyper flexible leases and in some solutions, you can easily swap or return devices and only pay for what you use.

  • That buying is easier than a lease – Once upon a time this was definitely true but not anymore. Many services are turning to a subscription basis these days. With this format becoming the norm, it means we are far more familiar with it and it’s easier. In the case of Hardsoft, leases are exceptionally straight forward with little to no red tape.

  • That you have more control with management and maintenance – This just equals more hassle and chores for your business and IT department. Hardsoft can assist you with maintenance and management and still let you make all the decisions. By setting you up with an MDM, you can regain full control over all your devices.

Why Leasing is Always Better than Buying with Hardsoft?

Unlike other computer equipment suppliers, Hardsoft has a strong focus on service and flexibility.

We’re named suppliers of Lenovo, HP, Microsoft, and Apple. This gives us the ability to mix and match devices from different manufacturers as part of your lease. With most other suppliers this isn’t possible.

We also have leasing solutions where there are no penalties for returning equipment.

Most importantly, with Hardsoft Leasing Ltd, we are able to make autonomous decisions about who we lease with. There are no hidden third-party finance companies, so we can make and finance our own decisions. This makes the leasing process far smoother and faster than other suppliers.

The Disadvantages of Buying Computer Equipment Outright

  • Large outgoing expense all at once.
  • Prevents other expenditures that could further your business, such as marketing campaigns.
  • Less cash on hand for emergencies i.e., PR issues or mechanical faults in the office.
  • Machines will quickly become outdated.
  • All management and maintenance are the business’s responsibility, on top of running your company.
  • Employees become unhappy with old machines and want better, newer hardware.
  • Old machines become slow and a security risk, increasing downtime, yet many businesses cling onto them to get their money’s worth.
  • No strategic support or maintenance support.
  • Stuck with equipment you may not need in the near future if circumstances in the business change.
  • Inflexible e.g., if you buy desktops, you’re stuck with them even if there is a global pandemic and everyone needs a laptop to work from home.

Types of Leasing

Not all leasing packages are the same. Hardsoft have developed a range of leasing solutions, so every business style can find a package that works with their business objectives.

Pure Rental – Exactly as it sounds. Get IT hardware for your business at highly discounted rates. With Pure Rental you don’t work towards ownership of your computer equipment, you merely rent it.

Flexi-Lease – This leasing solution has all the advantages of leasing with none of the alleged drawbacks. With a Flexi-Lease, there are specific options built into the package that allow you to CONTINUE, CHANGE, or CANCEL your lease. You aren’t stuck in the lease and there is a huge amount of manoeuvrability. There are options to own the devices at the end of the lease, or not. The scope of this leasing solution makes it Hardsoft’s most popular package for businesses. 

DaaS – Device as a Service. Our most comprehensive leasing package has two levels: Essentials DaaS and Premium DaaS. Essentials make it even easier for businesses to access state-of-the-art equipment and exceptional support while keeping costs to a minimum. Premium works alongside businesses to grow and shrink as they require. With Hardsoft’s custom DaaS solution, known as Devices For Teams, your equipment will be continually upgraded to avoid obsoletion. There’s a complete support package and options to swap and return devices as needed. 

Which Businesses Will Most Benefit From Leasing?

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Startups, scaleups and industries where staff work in changing environments will gain the most from leasing their hardware.

All businesses can reap the considerable benefits outlined above by acquiring a computer equipment leasing package. However, a leasing solution is even more advantageous to certain types of business.

Companies that experience a high degree of change require the greatest flexibility when it comes to their hardware.

Whether that change is in terms of strategy shifts, team sizes, or individual staff roles, it can affect which IT equipment will be of greatest utility.

With buying, you’re stuck with the equipment you initially bought. On the other hand, with many modern leasing packages, there are options to change and swap the equipment for different devices.

Industries where staff regularly work in and out of the office will be especially suited to leasing solutions like DaaS, as will scaleup businesses.

Both new startups and scaleups will benefit the most from the cost spreading of leasing. Scaleups will be particularly aided by Hardsoft’s Premium DaaS packages. The upgrade features and extreme flexibility will allow rapidly scaling businesses to pivot their staff and strategies swiftly for greatest effect to their growth.