There are many advantages and disadvantages of leasing and renting office equipment, as opposed to buying it. With as many companies and businesses that are now leasing office space, it is no wonder that they are also leasing the equipment that goes in it. It all comes down to preference when making a decision such as this, as some people would like to put out the money for the long term investment of owning their furniture and equipment, while others have a more temporary approach to things.
One of the advantages of leasing or renting office equipment is that there is no lump payment. Buying numerous items to go into your office space can be an expense; therefore, by leasing or renting, you have no lump sum bill at the end. Instead, you can pay small monthly payments that will not rob you and your company of all its money. Leasing allows you to afford better equipment, as it frees up more money to use at any time.
Another advantage is the short term use. If you need equipment only temporarily, buying it outright may be a waste of money. Short-term leasing lets you use equipment without worrying about finding a buyer once it’s no longer needed. Leasing offers easier access to credit, as it’s simpler for businesses to acquire credit for leasing than purchasing. Even though all of these advantages seem ideal, you still have to look into the disadvantages of leasing equipment for your executive office suit.
The first disadvantage is that you have no ownership of your property. Leasing means you never own the equipment; it remains the property of the leasing company. Once the lease ends, you must return the item, regardless of how much you’ve paid to rent it. Even without ownership, you’re still responsible for repairs and maintenance of leased equipment. This adds up, especially if you no longer need the item and can’t sell it after the lease ends. Lastly, long term cost is a big disadvantage of leasing or renting office equipment. Leasing equipment for a few years may cost more than purchasing it upfront. However, if you are only leasing for a short period of time, you will indeed save money.
Choosing to lease or buy is a tricky decision to make, as there are so many factors that play into it. Your decision depends on your business type, how long you’ll stay at your location, and equipment usage frequency. Look into all your options and make your choice today!