How can you Reduce Capital Expenditure on your IT Equipment?

26th February 2020
Purple background with details of leasing in bullet point form

IT equipment is essential for most businesses but can also cost a lot and take up a large chunk of your capital expenditure. Purchasing IT equipment for your whole business outright may seem like a necessity, however, there are other options available to balance cash flow and avoid those large one-off payments.

Leasing is ideal for getting the kit you need for your business, whilst spreading the cost out over time and reducing capital expenditure. As a business, you have enough plates to spin without worrying about the financial burden of IT equipment. Having the right tech can be crucial to functioning to your full potential, but the money it costs to buy outright may be best spent elsewhere within your business. 

What is leasing?

Leasing tech offers many benefits to businesses. It is very similar to a phone contract, taking regular payments with the chance to upgrade after two years. Buying tech outright has been the traditional way of securing IT equipment, but now businesses are realising rental and lease options can benefit their business in more ways than one.

The benefits of leasing IT equipment

No high initial outlay costs

As a business, you may not have large sums of money to spend on technology. With leasing, you can use your money where it’s needed most, while spreading the cost of your tech out over time into manageable, weekly payments. This in turn will reduce capital expenditure and balance cash flow.

Access the best technology

Technology is the foundation of many businesses. It’s important you have equipment that works for you and is in the best condition at all times. If you choose lease, you will have the option to upgrade your equipment every two years, meaning your business can run seamlessly with the most up-to-date tech for the job.

Easy and hassle-free

Leasing technology eliminates the need to dispose of old equipment when it comes to the end of its life. You can simply hand it back and get the newer, better model. Throughout your lease, you also have technical support to ensure your equipment is always running at its best.

Tax relief for businesses   

Leasing technology for your business can be treated as a business expense. Whether you’re leasing a computer desktop, software, a laptop or a printer, you will be able to claim the payment against your profits as it is 100% tax allowable.

Why should I choose to lease over purchase?

When it comes down to acquiring your IT equipment, you may be balancing the pros and cons of leasing over purchase. There isn’t a simple answer to the question as every business is different. The benefits above should be taken into consideration if you are concerned about the capital expenditure of your business however, as it can really enhance your business while also keeping your finances in order.

Here at HardSoft, we offer a Flexi-lease plan for our range of desktops, laptops, printers and software. These lease plans last for three years and allow you to either upgrade your equipment after two years or continue to the end of your lease and own the equipment outright. You also have the option to hand your equipment back after two years and end your lease.

Offering a flexible credit criteria, we provide leasing plans to many new businesses who don’t want the initial expense of IT equipment. We also offer Devices for Teams, which is a unique Apple DaaS (Device as a Service) subscription. This tailored solution will provide you with multiple Apple devices for a single monthly payment, giving you the option to add any other Apple device throughout the subscription. Perfect for high growth businesses, you can even refresh and swap any devices after just 12 months.

If you’re interested in leasing equipment or would like to find out more about how you can reduce your capital expenditure, call us on 020 7111 1643 or email Alternatively, take a look at our range of Apple devices, PC devices, printers and software.