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Leasing vs Buying Technology
April 26, 2008
One of the most important questions every small business owner faces is how to pay for new tech equipment which you need to help your business grow or to get your new business started in the first place. Is it better to buy the equipment you need, or should you lease it? You know if you walked into a car dealership and asked every salesperson this question 99.9% of them would want you to lease. Why? Because everybody makes more money out of the deal that way.
I do agree available cash flow is one reason to lease your technology instead of buying it, but there are other reasons. If your business depends heavily on technology, you're probably better off buying because most leases last at least three years anyway. If, however, your business doesn't depend so heavily on IT, leasing can allow you to attach a fixed cost to your IT investment. Leases also typically include maintenance and service contracts, which saves money. Regardless of whether you decide to lease or buy, it's always a good idea to shop around and talk with multiple vendors.
Posted by Shanu Singh Guliani on April 26, 2008 | Comments (0)