Guide to Leasing Computer and IT Equipment

If you wait until cash is available to buy the equipment you need, you may find yourself forever behind the technology curve, trying to catch up. Lease financing is a great way for a smaller company to leverage its budget for purchasing IT systems and obtain the critical solutions needed to compete.

Leasing benefits include:

1. Capital conservation: Money is not tied up in equipment, leaving more cash available for personnel, office space or training.
2. Credit conservation: Your credit lines stay clear, putting more capital at your disposal.
3. Total financing: You can finance 100 percent of IT equipment costs, plus software, license agreements, maintenance and services.
4. Flexibility: A lease can be customized whether you have 5 employees or 500. Payments might be spread over 36, 48 or even 60 months, or adjusted to fit seasonal or annual cash flow needs.

Tips & Tactics
Helpful advice for making the most of this Guide

• Leasing lets your business acquire new technology when you need it.
• Leasing offers balance sheet appeal, too. Unlike capital equipment purchases, an operating equipment lease has no depreciation schedule and is off the balance sheet. Plus, payments may be considered a deductible overhead expense.
• Leases are especially helpful if you need to upgrade early. Most leasing companies will buy back a lease and put you into something new at any time.

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