Many professionals and business owners consider equipment purchases and long-term service contracts to be an investment in their enterprise. However, there are times when it makes more sense to lease big-ticket items like computers or telecommunications and multimedia equipment. Even server rentals are more convenient and cost-effective for short-term or temporary use than contracts. Here are four instances when it’s better to rent a service or piece of equipment than to buy it.
Business Relocation or Renovation
Business expansion is good, but moving to a new location or renovating an office doesn’t mean that you have to cease doing business. Often business disruption costs money, especially if you’re in a fast-paced industry where timeliness is essential to remaining competitive. A solution to this is to lease computers, servers and telecommunications equipment for use in a temporary work space so you and your staff can still conduct business as usual during the transition phase.
System or Software Testing
There are times when a company would like to try out a new technology or piece of equipment beforehand. Short-term leasing provides you with the ability to try a new technology to see if it fits well with your needs. In the cases like medical or specialty equipment, rental equipment is usually cutting-edge and pre-calibrated to suit the purpose. Many leasing agencies offer flexible terms so that you’re covered during peak times in a seasonal industry or when you have an unusually large production demand. Since a lease is an expense rather than a capital investment, it’s easier to obtain approval for temporary service or production disbursements.
Classroom or Staff Training
If you’re an instructor who isn’t tied to one facility or you conduct regional seminars on a regular basis, it’s more efficient to lease the equipment and accessories you’ll need in each location. This helps eliminate problems like transporting equipment and associated issues like lost, stolen or damaged computers and peripherals. Server leases are also a convenience, especially if you travel out of the service area of your regular provider. Staff training sessions are also well-served by leasing if it will take time to install a new system. This way, your staff can be familiar with the new technology and prepared to hit the ground running with no lag-time when the new equipment or service installation is complete.
Sales associates and other mobile workforces often do their business on the road, so transporting equipment is cumbersome and costly. If you need a secured server, leasing one on an as-needed basis is a better solution than relying on the public or semi-public accessibility at a convention hall or hotel. You may also find that you need an additional service or piece of equipment at certain locations, and leasing is the perfect way to fill a temporary need.
Aside from logistical issues, leasing equipment and services also eliminates worries like:
– parts replacement
– unnecessary downtime
There are many companies online and in your local area that offer sweet lease deals on a number of goods and services. In order to avoid problems, check each providers’ terms of service requirements, cancellation penalties and any extra clauses or provisions that might cause problems. Before you make a final decision on a provider, make sure to do a benefit analysis that’s suited to your needs.