Why lease computer equipment?

Leasing is a cost-effective method for an organisation to utilise an equipment asset without having to initially outlay the full purchase price of the equipment. With no deposits and the ability to achieve maximum tax benefits, and at the same time upgrade and track technology.

Leases are contractual arrangements by which the owner of property (the "lessor") allows another person (the "lessee") to use the property for a stated period of time in exchange for cash payments. The lessee acquires no rights to the property other than its use. The lessor is treated, as the owner of the leased property for both tax and non-tax purposes, and the lessee's rental payments do not establish any equity in the property.

Benefits of Leasing:

Reduced Initial Cash Outlay

• A reduced initial cash outlay is a primary advantage of leasing. Your cash may be better used for purposes other than buying equipment. There is no deposit.

Tax efficiency

• Saving in income tax as Lease repayments are considered an operating expense and are therefore tax deductible. Savings in VAT are achieved because the tax is not capitalised up front on the total investment, but rather paid monthly with each lease payment.

Flexibility in addressing obsolescence

• Leasing enables you to better keep pace with improving technology.

Flexibility in addressing need and suitability

• If you're not sure whether you really need a particular item of equipment, leasing an item will give you the opportunity to evaluate the item's utility to your business without committing to a substantial investment.

Current deductibility

• Your lease payments are fully deductible if you use the leased asset in your business.

Balance sheet appearance

• Leasing may improve such financial indicators as your debt-to-equity and earnings-to-fixed-assets ratios.

Total Convenience

• Brand new equipment configured to your specific needs, delivered to your premises within 24 hours.
• Faulty hardware replaced within 4 hours.
• Onsite, Remote and Telephonic Support can be bundled with your solution giving you a complete solution.

Easier credit terms

• It's easier to lease equipment than trying to get credit to purchase the equipment.

Affordable Payment Plans

• Flexible repayment periods over 2 or 3 years.

We believe that shifts in the IT and economic climates during the last few years justify reconsidering PC leasing for desktop and laptop refresh cycles. In many cases, leasing can offer attractive financing rates and lower total costs of ownership (TCO) than purchasing.