Why to rent?
In the USA, over 80% of the companies rent IT equipment
1. Redemption after a certain period:
2. Guaranteed replacement equipment:
3. Purchase of available equipment:
4. Flexible period:
6. Flexible termination of the contract:
7. Personal advisor:
+/- (No delivery)
Let’s say the company has €2,000 of its working capital.
When the company decides to purchase a computer for €1,000, there remains €1,000 (€2,000 to €1,000) of the working capital.
When renting a computer with a cost of €1,000, the monthly fee is €58. Business still has much more of the working capital - even €1,942 (€2,000 to €58).
- In 2 years and when purchasing a new computer, the working capital will reduce to €0, while during the rental a fee of €58 per month will be paid further on for a new computer.
- When purchasing, the costs for the equipment amount to €1,000. In case of failure, repairs cost extra.
– For the rental: €58 per month x 24 months = €1,392 = €1,000 + €392 (support centre). The support provides a replacement equipment in case of failure, full service costs and insurance.
Why you should not buy?
"A workman who wants to do his work well must first prepare his tools"
Everything is getting old and worn out. Hence you need constant maintenance over time which requires extra costs.
All care from the standard inspection to the repair is carried out in the responsibility and expenses of the owner.
Sale of the equipment
When a computer is no longer needed, you may have to sell it nearly for free but this also requires money and time.
Disclaimer of the alternatives
Spending money makes people refuse alternatives. Buying computers at full cost reduces the amount of working capital that can be spent on business growth.
Why to rent?
Professional expert advice
Professionals choose the computer not only according to the nature of the work but also the specific software used. From the minimum requirements to the programme requirements for a productive work.
No need to freeze money
Upgrade computers, e.g. 10 workstations preliminary cost €500 x 10 = €5,000. The company can pay €20 x 10 = €200 per month and use free funds for faster business development.
It is easy to forecast business expenses
There is nothing better than a clear price. The monthly cost of a computer rental for a workstation is always constant. If the equipment breaks down, it will be immediately replaced by a new one. No extra charges. This makes it easy to plan and improve your business.
Replacement equipment in case of its breakdown
In the event of a breakdown, the supplier replaces the rented computer with a new one. This reduces downtime of the company. In order to ensure continuous work, the company must have back-up equipment and be prepared to use it for the extra cases. By renting a computer, the company escapes the cost of replacement equipment in the office and reduces the time spent on replacing equipment.
Rental costs are included in operating costs
When buying an IT equipment, it is usually written off within 3 years. Thus, in the current year, the company reduces its profits by only 33.3% of the money spent. When renting computer equipment, the full amount (100% of the expenses) is written off and this reduces the profit. Hence, profitable companies choose a rental alternative to reduce the taxes paid.
Constantly upgraded equipment
A company that uses not older than 2-year IT equipment works most efficiently since it uses the latest software for its business. The best architects do not make drawings by hand - they deliver 3D visualisation.
NON-cash motivation for the employees. Especially, if the work hangs due to old equipment and it is a shame to show your computer to customers.