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There are pros and cons to both, which comes down to which priorities your company has regarding hardware.
Much like the debate over buying an smart phone outright or having an smart phone through contract, preference, cost and needs are the most important elements to consider when it comes to buying or leasing your hardware.
The pros of leasing
When it comes to tech hardware, one of the biggest barriers facing a company is the ever-changing landscape of tech.
Given that tech equipment can become obsolete so quickly, leasing offers the opportunity to keep tech up-to-date.
If a lease expires, you can opt for faster, more agile options at your fingertips, rather than having to stick to a piece of equipment that may no longer suit your requirements – a key competitive advantage.
Minimal maintenance costs
As the lender is typically responsible for hardware upkeep, maintenance costs are generally lower when leasing rather than buying outright.
This also tends to include shipping and installation costs that can be covered, making it a more palatable option in terms of expenses.
Smooths out cash flow
With regular monthly expenses, leasing offers a predictable expense system that can help businesses who are budgeting, with the added advantage that leases rarely require a down payment.
Prism Pack, for example, starts from just £74.99(+VAT) per month, covering pre-configured state of the art hardware, data protection features and virtual helpdesk support.
The cons of leasing
You may pay more in the long-term
Leasing is almost always more expensive than outright purchases when adding up monthly costs, particularly when including any interest and additional fees.
With leasing, there are many rules to keep in mind around maintenance, expenses and reselling, which is why reading policies is so essential when considering leasing.
You have to continue payments even if you stop using the equipment
Dependent on the lease terms, you may have to make payments for the entire lease period even in the event that you have no need for the equipment anymore.
The pros of buying
It’s a simpler process
Unlike leasing, buying outright involves less fine print and paperwork – you simply find what you need and purchase it.
Rather than having to provide detailed financial information and negotiate complicated terms, you can simply get what you need, when you need it, on your own terms.
You have more control
When leasing equipment, you are required to maintain it according to the specifications of the leasing company.
Buying the equipment means you can determine the maintenance schedule yourself.
The cons of buying
It’s an ‘all at once’ cost
Whilst buying may be cheaper in the long-term, it’s still an upfront cost of all equipment at once, which may not be viable for businesses that don’t want to dip into reserves or take out loans.
Tech equipment generally isn’t considered to be the best long-term investment due to the speed with which equipment can become obsolete – it won’t be easy to sell either, as if you’ve moved on from the uses of the technology, the chances are that everyone else has, too.
Whatever your choice may be, you have to keep in mind what your business needs both now and in the long-term.
If you’d like to get set up with Prism Pack today to get all of your needs covered and added to your existing systems, call us on 0345 121 7770.