Business Equipment Leasing vs Buying

You always have the option of buying your Office Equipments outright. But is it the best and most cost effective option available to make the acquisition.

Buying an asset is usually the most convenient method of acquisition for small to medium sized businesses. But purchasing Business Equipments from company’s funds simply means locking your working capital. Paucity of funds in the current financial year or the high costs can discourage critical upgrades and hamper the efficiency and productivity of your business. Particularly some high-end multifunctional office equipments may seem impossible to acquire. This is where Leasing companies in UK come in to provide you the benefits of leasing, preventing you to compromise on critical upgrades.

An Asset Finance Company UK can help you expand your business infrastructure and ensure smooth running of your business. Furniture, EPOS Systems, computers, machine tools, laboratory equipment and contractors' plant, refrigeration, light and heavy commercial vehicles, plant, machinery and even shop refits are all candidates for leasing (Subject to Status). The lessor retains the ownership of the office equipments whilst the lessee is in the possession of them on payment of agreed rental over a stipulated period of time. Another advantage of leasing is that you can select the office equipments from a manufacturer or a supplier.

Acquiring office equipment through the route of leasing prevents you from investing a large amount of capital when it can easily be avoided, allowing you to release the important cash and use it for important business needs. You are also not required to make a large up front payment and able to meet unexpected business requirement as and when they arise. As your working capital do not remain locked up you can timely respond to sudden unexpected opportunities as well.

A lease is negotiated usually on terms specific to the deal, with the lessor. The lessor acquires the goods chosen by the lessee. Uniquely, this can allow the lessee to use the goods by making payments out of revenue. Office equipment (including photocopiers and fax machines) and furniture, cars and commercial vehicles, computers, machine tools, laboratory equipment and contractors' plant are all candidates for leasing.

Benefits of Leasing:

• You need not tie up your capital in office equipments.
• Improves budgeting as all cost are fixed
• Office equipment cannot be withdrawn, if you keep complying with the agreed terms.
• Depreciation and allowance are none of your concern; you are just required to pay the rental cost
• Inflation does not affect leasing as you pay a fixed amount over an agreed period