Equipment Leasing

By Bethany Ramos

The life of a business computer is very short, especially considering the substantial investment that is involved in purchasing new systems for even small businesses. The average lifespan of a frequently used laptop can be as little as two years; a desktop computer may only last up to three years. This is not taking into account constant technological upgrades that may be needed to improve workplace productivity. One way to overcome the continuous capital outlays for new computers is to turn to a computer leasing company.

What are the advantages of computer leasing?

If your business can't afford to buy brand-new computer equipment every two to three years, leasing may be your only option.

Here are several computer leasing advantages to consider versus buying equipment outright:

• Lower initial cost. When you add up the total expense of a lease, it will cost more than buying computer equipment. However, businesses with little cash flow may prefer leasing since it is less likely to require a down payment and offers low monthly rates.


• Tax deductions. Business equipment lease payments, including computer leases, can be deducted on a company tax return at the end of the year.


• Upgrade potential. Given the short shelf life of technological equipment, computer leases will allow a business that relies heavily on high-tech machinery to upgrade to newer programs and devices once a lease term ends.


• Flexible terms and conditions. A lease is much more flexible than a large scale loan used for buying computer equipment. This payment option may be preferred by a business with bad or little credit.

Leasing computer equipment will not only allow you to keep your office stocked with the latest technology and applications, but it will also help you to reduce large purchases that can be difficult to deal with no matter how large or small your company is. However, before you run out and lease computers for your company, you need to know what to look for, what questions to ask, and what pitfalls to avoid.

What to look for in business computer leasing:

Each computer leasing company is free to offer whatever type of computer they want. Some lease name brand computers like Dells and IBMs, while others build their own models. Because of this, it is important that you understand what type of computer you are getting from a computer leasing company before you sign a contract.

In order to determine the quality of computers available, you'll need to ask your leasing agent about the brands of computers that they carry, the memory, speed, audio-visual components, networking capabilities, etc. You will also want to ask about the computers' compatibility with the software programs you use and the external technology devices that you use such as printers, fax machines, bar scanners and document scanners.

Lastly, consider the variety of leasing options available from a specific vendor to meet your business's equipment needs. A computer leasing company may offer leases for:

• Laptops
• Desktop PCs
• Computer workstations
• Servers
• Audio/visual equipment
• Printers/copiers

Today, select vendors also advertise tablet PC leasing and rentals. Mobile tablets can be used for display or as traveling workstations with leasing options available in one to five year terms.

Computer leasing questions to ask

When searching for a computer leasing company to work with, you'll want to look for a quality company that offers good deals on their leases.

Some of the questions that you will want to ask potential leasing companies include:

• How much each lease is going to cost.
• If they offer a bulk discount.
• How long each lease will be for.
• If your company will be required to carry insurance for the computers.
• What trade-in options the leasing company offers.

These questions will help you to determine if the deals offered by the computer leasing company are going to be more or less affordable than buying your computers new.