Why to rent IT equipment?
Posted by rankcomp on March 11th, 2011
At times, leasing equipment creates more sense than buying, particularly if you require the equipment for long time frame
Here are some incentive of renting equipment
Money Effect
1. There is no cash outlay which frees up cash for other working capital requirement
2. It is like an additional line of credit or extra working capital for the business
3. The product is financed at a flat rate for the tenure of the hire. i.e. the monthly expenditures will not change.
Accounting Impact
1. Simpler accounting procedures via monthly invoices
2. Lease payments fit within your operating budget, eliminating the need for capital expenditure approval
3. There is less formality required for funding approval and personal guarantees are not required
4. Leases are a form of off-balance sheet funding, without affecting your ability to borrow
5. renting improves the return on investment & return on assets financial ratios
Technology Ownership
1. You are not investing funds in quickly altering and depreciating technology
2. You are paying for the product as you use it
3. By eliminating the hassle and TCO, leasing lets you concentrate on your core business
4. leasing is a hedge against price rises – you can have cutting edge technology of today and pay for it with tomorrow’s dollars
5. Avoid outdated technology and control the technology lifecycle
6. There are no maintenance responsibilities that come with buying of products
7. The trouble of selling used office equipment are eliminated
Tax Effective
1. Expenditure for rent is usually income tax deductible. Note Please check with your regional tax authorities
What Can You Rent ?
Normally, any medium sized IT Rental Company will be able to bring in the following Information Technology equipment on rent :
1. Servers from low end to mid or high end.
2. Workstations from low end to mid/high end.
3. Laptops to Netbooks & MacBooks
4. Desktops , Mac, AMD
5. Printers Laser, Inkjet, MFD, Network printer, Color laser printers
6. Copiers Entry level to mid level
7. Scanners Entry level to mid level. AFD and Duplex
8. LCD Projectors of 1500 ansi lumens to 5000 ansi lumens
9. Sound System for about 25 people to 1000 people.
10. LCD Screen 32 inch to 42 inch
About The Author
Rank Computers is Indias leading computers rental company. We are primarily focused on computers rental, laptop hire, computers on rent, server on rent, desktop on rent, projector rental, apple pc and laptops on hire, other Audio Visual and IT equipment at best prices.
