All too often, as Business Heads we ask ourselves ‘why should I rent IT equipment?’, when really the question you should be asking yourself is ‘why am I spending so much money on buying latest technology?!’ If you ask customers why they prefer to buy new laptops, they’ll highlight performance, reliability and updated software as key factors in their decision making.
Rented laptops are often perceived as weaker on these fronts, unreliable and operating slowly, they’re seen as a risky choice. Concerns about rented laptops are often unfounded, as long as you find a reputable supplier. Many rented laptops offer performance and reliability that is equivalent or even exceeds that of buying new, all at a lower price!
Wherever you are in your business journey, the cost to buy IT equipment is one of the expenses you will have to bear. With cash resources extremely tight for a growing business, it’s understandable that you’re looking to make savings wherever you can. Hence, it doesn’t come as a surprise that most of the small and medium scale businesses are placing their bets on renting IT equipment. Rather than buying new laptops upfront and shrinking cash flow in the business, more and more SMEs are looking to rent or lease their IT equipment. Thereby, reducing their financial burden
Let’s compare Buying vs Renting
Buying IT Equipment:
For instance, a particular IT equipment costs Rs 7.5 lacs and the interest on the employed capital is 10%. The net cost of the IT equipment after deducting depreciation(@60% of the equipment cost) for a period of 3 years will be Rs 7,64,400.
Renting IT Equipment:
Over a similar period of 3 years, if you take the same IT equipment on rent, you will end up saving up to 20%. The average rental cost will be 40.5% of the Equipment cost(Rs 7.5 lacs),i.e. Rs 303750. The annual tax benefit by claiming depreciation @30% will Rs 91,125. If you extrapolate the figures for 3 years, then the net cost for renting equipment after 3 years will be Rs 7,12,875. Thereby, saving Rs 1,53,525 over a period of 3 years.
Surely, reducing business costs is certainly one of the most sought-after benefits of renting IT infrastructure. Likewise, there are other advantages that make renting IT equipment as an attractive option.
3 ways Renting IT Infrastructure makes Business Sense
1. Save And Control Cash
The ability to rent IT equipment rather than buying multiple devices upfront can help to save your working capital for day-to-day business expenses.
2.Capitalize on Opportunities for Growth
Having surplus cash can act as a catalyst in enabling your business to yield rich dividends. With cash in the bank, it is possible to make the most of the opportunities that come your way. That could simply be using early payment discounts offered to you by suppliers or taking on new orders which require an initial cost.
3. Quality Pays Off
Buying cheap computers does not save you money, in the long-term they cost you much more. The top business laptop ranges are built to last for a longer duration while cheaper consumer products may start having issues early on.
They might be expensive. However, you can save significant amounts of money if you opt for the rental option within these high-quality laptop models. These will have all the same components and give you a similar experience without having to pay a massive amount upfront.
IT equipment having higher versions of RAM and processor have lightning speed. Thereby, enabling you to effectively breeze through your office work.
Let’s talk we would love to save you money
These ideas that we have presented are based on our experience in solving IT equipment purchase problems for our customers. If you’re interested in making big savings on your IT equipment get in touch with us here at Prime Asset Source. We will answer any questions you may have and explore your IT requirements to find out what the best way to save your money.
So what’s holding you back? Throw your questions at us.
What more pressing business problems do you think exist in buying IT equipment? Can they be solved ingeniously using some out of the box techniques?