Important Tips for Leasing IT Equipment for Your Business

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When setting your business budget, the cost of buying office equipment may prove costly. This is why many business owners opt to lease IT equipment instead; not only is it a cost-effective option, it also means that you will not have to worry about upgrading your old equipment. With the relentless advancement of technology, IT equipment becomes obsolete within a few years as new gadgets take over. Leasing IT equipment means that you have the option of renegotiating the deal and upgrading the equipment to the latest version simultaneously.

While the benefits of leasing IT equipment are obvious, many new business owners are unsure about the process of entering a leasing agreement. In fact, many opt to buy equipment rather than go through the hassle of leasing. However, the leasing process is quite simple if you know what to look for:

Type of lease
Most leasing companies will either offer you a capital or operating lease. A capital lease is much like a loan, which means that the equipment will fall under assets on the balance sheet and you will enjoy benefits like tax depreciation. In the case of an operating lease, ownership of the equipment is retained by the leasing company; the equipment is considered operating expenses rather than assets. Operating leases are usually preferred since they don't tie up your funds and have shorter terms of about 3 years or less.

Length of the lease
Leases for IT equipment usually run between 2 and 4 years, with longer leases having lower monthly payments. However, it is important to note that you will probably end up paying more over time with a longer lease.

Insurance
Depending on the leasing company, you may be required to insure the equipment. In such a case, you would need to find out about coverage against damage or loss from your insurance agent. Note that a company that does not require you to directly insure the equipment may increase your monthly fees.

Lease termination
Ensure that you discuss the lease termination policies with your vendor, since you may need to opt out earlier. Find out whether you have the option of ending the lease early, and how much it would cost you if you did. This is crucial since you may need to upgrade to better technology sooner that you expect. It is also important to find out what happens once your lease expires. Some vendors will simply expect you to return the equipment, while others allow you to renegotiate your lease or even purchase the equipment if you are satisfied.

Buyout options
Once the lease expires, you may be allowed to purchase the equipment for its fair market value (FMV). Some companies offer a 1 dollar buyout option, where you get ownership of the equipment for 1 dollar once your lease expires. FMV leases generally have lower monthly payments than the alternative. In addition, the 1 dollar buyout option would not be ideal if you intend to upgrade to the latest technology once your lease expires.

Most equipment leasing companies make room for negotiations. As such, it is advisable to shop around for the best deal before you settle on one vendor to lease IT equipment from.

If you need to lease IT equipment in Malaysia or Singapore, visit Lease IT Equipment.

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Smartphone Leasing The New Alternative To Lengthy Contracts?

At the moment high end smartphones such as the iPhone 4S and the main competitor handsets such as the Samsung Galaxy S2 and the BlackBerry Bold 990, have all seen major technological advances over the last few years. But, to the cost of the consumers. Who now in order to obtain the handsets must choose a 24 month contract that can begin at £41 per month. If willing the monthly cost or the contract duration can be reduced to a more manageable £36 per month or to an 18 month contract. But again there's another trap. As this will incur a one-off fee to be paid for the handset. The fee has been seen with not just the iPhone but many other high end smartphones, around the £99 mark. Depending on how many months and how much will be billed each month.

For many a commitment of this kind can be difficult. Therefore, fortunately there is a large selection of medium to low end smartphones that still offer similar connectivity and specifications but may be made with cheaper materials. Such as the Samsung Galaxy Ace and the HTC Desire S. Still offering compelling packages but lacking in WOW factor and for many early adopters difficult to embrace.

But just recently a network provider in the UK, 02, have announced the launch of a new leasing service called 02 Lease, where customers will rent the phone for a 12 month duration. This can open the doors for many to obtain such expensive handsets with a very appealing contract length.

The new service offers a brand new phone with no up-front payment. The monthly payments are set to reach a whopping £55 a month. But this will include insurance, 750 mins and 500 MB data with unlimited minutes.

Giving the latest technology to those who do not want an upfront cost for the handset and being stuck to a two year contract. Therefore creating as little barriers as possible. It can be difficult to imagine how many other network providers will begin to offer this new leasing model.

But it sure sounds like a contract that may just become popular. Because living without smartphones for many people in the UK and even around the world would be a nightmare. With everyday activities with such accessibility is incredible. Users have access to a notepad, calculator, camera with up to 8 mega pixels, phone book, internet browsing and not to mention the diversity of Apps that can cover almost ever requirement out there. Even making cheap calls to Australia, USA and even China is now affordable via a mobile phone.

So whether leasing, paying monthly or going Pay As You Go (PAYG) there will always be a demand for smartphones. Further backed by the ever increasing sales for smart phones. What will you be choosing?

Harvey McEwan writes to offer information and advice on a variety of areas, from technology to holiday destinations. Read through Harvey's other articles here to find out more.

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