It's no secret that when you start a small business, you'll likely be counting every penny. But there are smart ways to get the office gear and equipment you need without breaking the bank. Leasing can be a solid option, helping you get the latest tech and tools for your startup or small business while keeping some extra cash in your pocket for other needs. In this beginner's guide, we'll walk through what you should know before signing a lease, questions to ask, top leasing tips, and the pros and cons of leasing versus buying. Whether you need computers, printers, phones, or other essentials to get your business up and running, leasing may allow you to get more while spending less upfront.
Let's explore how leasing office equipment can be done strategically so you get what you need for your venture without overextending your budget.
The Benefits of Leasing Office Equipment for Your Small Business
Save Money
Leasing equipment means lower upfront costs since you’re essentially renting the gear rather than buying it outright. This frees up your working capital for other expenses. Lease payments are also often tax deductible, which can save you money.
Stay Up-to-Date
Technology changes fast. Leasing lets you upgrade to the latest equipment every few years, so your business always has modern tools. This helps you avoid obsolescence and keep up with competitors.
Flexibility
Leasing provides more flexibility than purchasing. You can get short-term leases if you want to test out equipment before committing to the long-term. You can also get out of a lease early, unlike being stuck with purchased equipment. Leases often come with options to upgrade, return, or buy the equipment at the end of the term.
Predictable Payments
Leasing allows you to get essential equipment now while paying for it over time with fixed monthly payments. This predictable expense helps with budgeting and cash flow planning. Payments are often lower than financing a purchase.
Leasing office equipment is a smart, affordable option for small businesses. It provides significant cost savings, flexibility, and peace of mind so you can focus on what really matters: growing your company.
How to Choose the Right Office Equipment to Lease
When it comes to leasing office gear for your small business, you want to make sure you get equipment that fits your needs without costing an arm and a leg.
Focus on must-haves first.
Prioritize necessities like a reliable multi-function printer, desktop computers, and a phone system. Estimate how much printing and scanning you'll do each month to determine the right printer specs. For PCs, get models with enough power and storage for your daily tasks. A cloud-based phone system keeps costs low while ensuring you never miss a call.
Once the essentials are covered, you can consider adding useful but non-critical items like a projector, paper shredder or laminator. However, only lease what you truly require. Extra equipment means higher monthly payments and the risk of paying for things you end up not using.
Consider a bundle.
Bundling multiple pieces of equipment under one lease often comes with built-in discounts and streamlined billing. If you need a phone system, computers and a printer, a bundle can save you money versus leasing each item separately. Bundles also allow for easy equipment upgrades as your business grows.
Negotiate the best deal.
Don't be afraid to negotiate lease terms to get the most bang for your buck. Ask about promotions or special offers. See if the leasing company will match or beat a competitor's lower price. Request a longer lease period, like 5 years instead of 3, to secure a lower monthly payment. With some smart negotiating, you can land an affordable lease that keeps your office running smoothly without maxing out your budget.
Negotiating Your Office Equipment Lease: Tips for Getting the Best Deal
So you’ve decided leasing is the way to go for your new office equipment. Great! Now it’s time to get the best possible deal. Here are some tips to keep in mind as you negotiate with leasing companies:
•Do your research. Learn the fair market value of the equipment you want so you know if you’re really getting a good price. Check with multiple leasing companies and compare their offers.
•Ask for a lower down payment. The lower your down payment, the less cash you have to put down upfront. See if the leasing company will accept a down payment of 10% or less of the total lease value.
•Negotiate the length of the lease. A shorter lease term, like 3 years instead of 5, means lower overall costs for the same equipment. But make sure the monthly payments still fit your budget!
•Check for additional fees. Get details on any additional costs like documentation fees, processing fees or termination fees. Ask if any of these fees can be waived or reduced.
•Ask about end-of-lease options. See if you have the option to buy the equipment at the end of the lease for a minimal fee, extend the lease for a lower payment, or return the equipment at no additional cost.
•Bundle other services. You may be able to get a lower overall rate by bundling your equipment lease with other services like equipment maintenance, supplies, or software licenses. Ask if the leasing company offers any bundled discount packages.
•Be willing to negotiate. Don’t just accept the first offer from the leasing company. Politely push back and ask for a lower rate or more favorable terms. The worst they can say is no, but they may come back with a better deal to win your business. Staying confident yet courteous can help you win the negotiation.
Following these tips will help ensure you get the most value from your office equipment lease. Do your homework, know what you want, and don't be afraid to ask for the best possible deal. With some determination, you can negotiate an affordable lease that benefits both you and the leasing company.
Conclusion
So there you have it, folks. Leasing office equipment can be a smart move for your small business if you go in with your eyes wide open. Do your homework, read the fine print, negotiate the best deal you can, and make sure your lease terms align with the useful lifespan of the gear.
With some savvy planning upfront, leasing can help you access the tech and tools you need to grow your business without breaking the bank. But steer clear of predatory lease terms that lock you in long after the equipment is past its prime. Take it from us - a little research before signing goes a long way. Now go unleash your inner entrepreneur and get the right office equipment to take your small biz dreams to the next level!
Contact us for help with your equipment leasing needs. Wilmar can help!
