What Are the Benefits of Leasing Computer Equipment?
Leasing computer equipment can be a cost-efficient and reliable way to ensure that your company has access to the most current computer technology on a continuing basis. An equipment lease is essentially a contract in which a lessee agrees to pay a monthly fee for the ability to use computer equipment owned by the lessor. At the end of the lease, the used equipment is usually returned to the lessor and exchanged for newer, updated models.
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Obsolescence
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A large concern of computer buyers is the risk that equipment purchased today will be rendered nearly obsolete in a matter of a few years. Leasing computer equipment ensures that your company will always have the most current equipment and technology, and it can relieve the financial strain of making entirely new computer purchases at regular intervals.
Tax Benefits
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Leased computer equipment can be classified as an operating expense on your income statement, rather than as an asset or a liability on your balance sheet, giving you the ability to claim your lease payments as a tax deduction.
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Finance Benefits
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The lower value of your company's liabilities can positively shift certain ratio valuations, including the debt-to-assets ratio, times-interest-earned, and acid test ratio. These favorable shifts can allow your company to more easily obtain financing and external investment.
Lower Initial Investment
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According to entrepreneur.com, leasing contracts can often be undertaken with little or no money up front, allowing firms with small budgets to experience the benefits of using state-of-the-art computer systems without incurring significant debt.
The Future
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According to vernoncomputersource.com, the benefits of leasing computer equipment are most relevant for small businesses. Due to the increasing popularity of owning and operating a small business rather than incorporating for rapid growth, it is not unreasonable to assume that the leasing industry will continue to grow in popularity and importance in the future.
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- Photo Credit Image by Flickr.com, courtesy of Blake Patterson
