Corporate Computers: To Buy or To Lease? That Is the Question

When it comes to acquiring IT equipment for your business, the decision to buy or lease is not always straightforward. Each option has its own set of advantages and challenges, and making the right choice requires a thorough evaluation of your business's specific needs and financial capabilities. In this blog, we explore both options from our perspective at InnoVent, while also considering the experiences and feedback of our customers.

Yes, we understand what you might be thinking—as a leasing company, we're naturally inclined to advocate for leasing. However, we believe that the best choice depends on your unique situation, and we encourage you to weigh the pros and cons of each option before making a decision.

Buying IT Equipment

Many of our customers have traditionally chosen to buy their IT equipment. Ownership provides a tangible sense of security and control over company assets, which is understandable.

But ownership isn’t without its drawbacks, as our customers have shared with us over the years:

• Upfront Costs: Buying IT equipment requires a significant upfront investment. This can strain your budget and potentially divert funds from other important longer term projects.
• Maintenance and Upgrades: While ownership gives you control, it also comes with the responsibility of maintaining and eventually upgrading the equipment. These ongoing costs can add up over time, especially as technology evolves and your equipment becomes outdated.

Leasing IT Equipment

Now, let’s discuss leasing—first, from the perspective of our customers' experiences: Leasing offers several benefits that appeal to businesses looking for flexibility and ease of cash flow management:

• Lower Upfront Costs: Leasing spreads the cost of the equipment over the lease term (typically three years for IT equipment). This approach can ease cash flow pressures and allow you to allocate resources more effectively to other areas of your business.
• Access to the Latest Technology: Leasing allows you to regularly upgrade to the latest technology. Instead of being stuck with outdated equipment that frustrates your team and hinders productivity, you can stay ahead of the curve with up-to-date tools that keep your business competitive.

However, we also understand that leasing can have its downsides:

Negative Perceptions: Some businesses view leasing with skepticism, often due to the practices of some leasing companies that prioritise extending lease terms rather than refreshing equipment on time. This can lead to a scenario where you’re paying the same amount for equipment that’s no longer up to par—creating headaches and inefficiencies for your business.

At InnoVent, we take a different approach:

• Investing for a future re-use We invest a residual value in the equipment you choose to lease. This means you’re not only spreading the cost over time, but you’re also paying for just a fraction of the equipment’s total cost.
• Refreshing and Recycling: We want the equipment back at the end of the lease term, so we can refurbish it and offer it to secondary users. This allows us to recoup our investment while ensuring the First User can access the latest technology when their lease term is up. By avoiding the pitfalls of extended leasing terms, we help you maintain a modern IT infrastructure without hidden costs.

So, What Is the Right Choice for Your Business?

When deciding whether to buy or lease your IT equipment, consider the following factors:

• Financial Situation: If you have limited capital, need to use capital for longer term investments or prefer predictable expenses, leasing might be the better option. If your business can absorb a large upfront cost and prefers to retain long-term ownership, buying could be more suitable.
• Business Needs: Consider how important ownership and control over your IT assets are to your business strategy. Alternatively, do you need the flexibility to frequently upgrade your equipment to stay competitive?
• Sustainability: If sustainability is a key consideration for your business, leasing is often the more environmentally responsible choice. When you buy equipment, it often ends up as e-waste after a few years. In contrast, leasing—especially with us—extends the equipment’s useful life through refurbishment and a reusage and then a responsible disposal practices.

Making the Decision

Ultimately, the choice between buying and leasing IT equipment depends on your business's unique circumstances, financial goals, and operational needs. Choosing between buying and leasing it’s a strategic choice. Whether you're leaning towards buying or exploring the benefits of leasing, we're here to help you navigate the options. Contact us today for a personalised consultation and discover how we can support your business in staying ahead with the best IT solutions.

Let’s empower your growth together.