Why You Should Finance Your Technology Investments
Technology is an important investment in your business. After taking the time to evaluate your technology needs and acknowledging the impact it could have on your overall business, nothing is worse than letting price stop you from the upgrades you really need. Many companies will then cherry pick and select certain items over others, leaving them with an incomplete system that will decrease the value add of the tailored, comprehensive network.
When budgeting for future technology investments, many look at their working capital to navigate what they can and cannot afford, often limiting the potential impact the full technology investment would have made. Leasing your technology upgrades is the ideal solution to help you get the upgrades you need and reap the potential benefits from your technology and the act of leasing itself. Here are five reasons why you should consider financing your technology investments to get the comprehensive system you deserve.
Walk away with the right solution
Leasing allows you the full financing to be able to afford all of your technology needs, including hardware, software, cabling, and service plans. This prevents you from having to make difficult decisions and exclude things that you 100% need to build an effective technology network, limiting the benefits and leaving you with a system you may not be fully satisfied with.
Leasing your technology investments can offer potential tax-timing benefits that can make a huge difference come tax time. Depending on your tax bracket, lease terms, and equipment purchased, your lease payments may be able to be considered as operating expenses instead of capital expenditures, providing full and immediate deductibility. It’s important to consult with your accountant or internal accounting team to understand the potential tax savings.
Every business understands the importance of working capital and when you purchase equipment with cash, that obviously reduces the working capital available for other important business expenses. Through leasing, you can conserve that cash and use it for other efforts focused on growing your business. This means you no longer need to choose between the technology you need and immediate short-term needs, like keeping-up with inventories and other vital business expenses.
Flexible payment terms
Leasing your technology investments offers you the convenience to purchase everything at once and select the payment terms that best fits your organizational budget. Lending agents will work with you to come-up with a payment timeline that works best for you while keeping in mind your current needs and future plans.
Make money now
Making money is obviously key to every business and these potential technology upgrades often have an impact on your bottom line. It’s important to consider that the revenue or savings generated by these technology investments can help cover the lease payments and some businesses even start turning a profit on their new investments within the first few months of ownership.