Even if you can afford to buy business IT equipment outright, offsetting the cost by employing the benefits of leasing over purchasing is very likely to be a more sensible route. The major argument for leasing as opposed to buying is widely regarded to be the fact that it allows the company to retain capital rather than spending in an upfront lump sum, by shifting to monthly or weekly increments, the acquisition of usually costly equipment has a minimised impact on company cash-flow.

Despite this obvious upside, many decision makers in small businesses still opt to dent their capital by buying computers and the like outright, there is a good chance they hadn't considered the other major reasons for choosing to lease:

Simplicity

IT leasing does not require a deposit, nor reams of paperwork or a lengthy wait for contract approval. The whole process can be carried out quickly and efficiently - applications for leasing can easily be made online, over the phone or in person, and although subject to a credit check, tend to offer a faster answer on approval than other finance options. Unlike the compound interest associated with loan financing, with leasing all payments are for the same amount.

Affordability

Aside from the obvious fact that the cost of any equipment is spread over a long period of time, there is also the fact that leasing is not subject to interest or any hidden and escalating fees. The leaser has control of the length of the lease contract and very often, also the regularity of payments: whether weekely or monthly. There is no risk of paying over the odds and absolute clarity of price from the outset, so whatever a business's requirements, they will never find themselves going over budget.

Tax Benefits

As the equipment is used for business purposes: in the majority of cases, rental payments will be 100% tax deductable. There are exceptions, so a quick consultation with a qualified accountant in consideration of specific circumstances is advised, but more than likely the actual rental can be entirely offset as an expense and essentially cost you nothing.

Upgrades and Buyouts

A top quality leasing company will incorporate both the option to upgrade leased hardware part way through the lease agreement and the option to purchase the equipment for a nominal fee at the end of the term. These options provide the flexibility to change computer hardware to reflect the changes the business has gone through since taking out the lease, and side-steps the issue of being stuck with unnecessary equipment which was expensive but now has a low re-sale value.

Copyright (c) 2010 Jamie Lyons

Written by Jamie Lyons of Web Vitality SEO Manchester working on behalf of SmartPlan.info - Laptop leasing and business computer leasing in conjunction with PC World.