Running an office can be pretty expensive– in addition to the cost of equipment, you’re paying for the space itself, plus supplies and personnel. All of these costs quickly add up!
So instead of spending the money to purchase office equipment outright, you might consider renting or leasing equipment. These options mean that you can access the latest technology for a lower upfront cost than purchasing.
But while renting and leasing both more or less have the same outcome– temporary use of equipment– they’re actually quite different options. To figure out which one will be best for your business’s needs, you’ll need a good understanding of how renting and leasing both work.
Why not purchase outright?
If you purchase office equipment for your business, you’ll own it without having to make any monthly payments or worry about having to return it to anyone. It’s yours!
This might sound like the simple, obvious option, but there are some major drawbacks.
First, the cost of purchasing can be daunting. For a small or brand-new business, the capital required to buy computers, copiers, and other equipment might not be feasible for you– but you still need it to operate.
If you don’t have that money, you might be forced to take out a loan– and loans can affect your credit rating and come with hefty interest fees.
There’s also the question of technological advancement. If you spend a lot of money to buy all-new office equipment, keep in mind that technology continues to advance at incredible speeds. Your brand-new computer or copier might only be “new” for a couple of years.
And even if you keep using equipment after it’s become dated, manufacturers tend to force your hand into buying new equipment by discontinuing software updates after a certain point for older operating systems.
It’s really important to continually update all of your software to keep your company’s information secure, so this isn’t something you can let slide!
How does renting office equipment work?
Renting equipment is pretty simple to understand. You work with the equipment owner to agree upon a monthly fee and a time period.
Once you’ve worked out those details, you’ll have the equipment for the rental period while making monthly payments. When the rental period is over, you’ll return the equipment. It’s simple!
However, the simplicity comes at a price– literally. Renting office equipment might be the more expensive option compared to leasing, and it offers much less flexibility than a lease agreement.
How does leasing office equipment work?
Similar to renting office equipment, you’ll have possession of the equipment for a predetermined period of time while making monthly payments.
While you will have to pay interest on your equipment lease, it’s important to note that unlike a loan, the lease will not show up on your credit report.
In fact, leasing can help you to improve or build your credit. Improved credit can put you in a good position to be approved for a future business loan!
Your monthly payments will also likely be less expensive than they would be if you were renting– and the great news is that you can write off your lease payments as a business
expense.
Where can I lease office equipment in Little Rock?
At Central Business Equipment, we have the latest models for every piece of office equipment your business might need, and we offer great leasing options.
If you’d like to speak with us about leasing equipment for your company, give us a call today!