Computer leasing, Is it right for you?

When you run a business computers can be a very integral part of getting the day to day as well as the long term tasks complete. Depending on the type of business you run, a computer may be your life blood, or it may just be a staff you lean on for support. Either way, in today's world, if you own a business you need a computer, or multiple computers.

One option for obtaining computers is to lease them. Essentially, leasing them is like renting them, but when the specified amount of time runs out, you can choose to purchase them, or send them back.

So, how do you know if computer leasing is right for you?
You want to consider your circumstances and computer needs. For example, if you run a craft store, and you need a computer to simply run numbers, account for inventory, and ring up customers, then computer leasing is probably not your best option.

However, if you run a company that builds websites, and having the most up to date technology, and computer systems is a must, then computer leasing is a very good option.

Why is it good for the one case, and not for the other? Well, let's take a look at some of the advantages and disadvantages of computer leasing, and how they will apply to you:

Computer Equipment Leasing is a very attractive option for the acquisition of computers for some. Who? Well, when you consider the many companies with rooms full of old PCs, peripherals, last year's hot software, etc. you will recognize who could benefit from computer leasing.

One advantage of computer leasing is avoiding obsolescence. However, this is just one of the many advantages to leasing. Others include:

• Your business can always have the most up to date computer equipment and when the lease contract is over, better equipment can be leased.
• You can still choose to buy the equipment for market value once the lease is up, which is typically very minimal.
• Like renting or leasing a home, you are absolved from many of the maintenance problems, as the company you lease the computers from will take care of much of that.
• More affordable than buying a whole office full of new computer systems. (Even if in the long run you pay more, you spread it out)
• Is sometimes tax deductible.
• Can be 100% financed, which relieves the stress of coming up with a large sum of upfront money (this is especially beneficial to start-ups or small businesses).
• Allows you to pay for equipment as it produces income
• Preservation of your cash and bank lines

Disadvantages include:

• You do not actually own the equipment, so your net worth is not growing with the purchase.
• Leasing for long periods of time can end up being much more expensive than buying.

When deciding if computer leasing is right for you, consider the following:

• Computer equipment can become obsolete in just 3 or 4 years
• With a lease, it's easy to expand or replace equipment
• You are relieved of the responsibility of ownership
• Leasing is easy and usually requires less security than other financing

If you have a whole office that needs computers, and you do not have the funding to go out and pay cash up front for these computers, then leasing is a great option for you. If you work in an industry that must always be up to date with the latest in computer technology, then leasing is probably a great option, as you can upgrade as often as you like. However, if you run a business that only requires a few computers, if you only need basic computer applications, like word processing and maybe excel, etc. then leasing is not really right for you. Your money would be better spent on purchasing a computer, and chances are, the computer you purchase will work for you for quite some time if your specific needs do not change too much.