Many businesses would love to stay up to date with new technology. They can see the benefits in, for example, video conferencing – lower carbon footprint, decreased travel time and expenses and better work life balance for staff. They’d love to be able to use video conferencing. The problem is they just don’t have the budget to invest in the equipment, or they can’t justify the investment without knowing what the return will be. The solution can be to buy an operating lease. It’s a cost effective way to access new technology and it has many other benefits too.
Operating Leases and Video Conferencing
Video conferencing equipment can be purchased on an operating lease, which is like a long term usage agreement or rental agreement. Instead of purchasing the equipment itself, you buy a lease that allows you to use the equipment for a specified period of time. Operating leases are normally slightly less expensive than the overall cost of the equipment itself, and they are flexible and offer other benefits too, including:
Improved cash flow: Instead of paying upfront for the equipment you pay a monthly amount, spread over a number of years. This is great for your company’s cash flow as you know exactly how much you will be spending each month and can budget ahead, rather than having to find a large amount of money to purchase equipment outright.
Tax benefits: When you purchase equipment it is considered an asset and is not viewed as a tax expense; instead you can only claim a capital allowance for it. However, the monthly payments and VAT that you pay under a leasing option are both tax allowable expenses so you can effectively claim the entire cost of the equipment for the time the operating lease is in place.
Package deals: When you take out an operating lease it doesn’t just have to cover the cost of the equipment. You can also include installation, training, maintenance and software in the lease, and spread the cost.
Easy upgrades: Have you ever invested in an expensive product and then found that it didn’t actually work out as you planned? With an operating lease you have the flexibility to change and upgrade equipment as you need it, often without affecting your monthly payments.
Easy disposal: Equipment becomes old and outdated and it can be difficult getting rid of it – no one wants to buy it, and safe disposal can be costly. With an operating lease you simply hand the equipment back at the end of the leasing period, or renew the lease for another fixed period, perhaps with upgraded equipment.
Budgeting and forward planning: Leasing gives you the option to invest in more, or more expensive technology than you could purchase outright and because you know exactly how much your leasing option is going to cost you every month, you can plan ahead.
If you would like to find out more about operating leases and video conferencing give us a call now on 0118 336 0010 or fill in the form and we’ll be in touch.