The cheapest option is very rarely the best option in the medium to long term. By taking the leased route, you and your organisation are able to get the best solution for your needs now, allowing you to complete effectively in the marketplace, rather than having to look at a "quick fix", which will more often than not end up costing the business more in the long run.
There is no need for a major capital outlay to acquire the new equipment. A small weekly or monthly outlay is all that is required.
Most capital asset acquisitions are for one of two purposes, to make or save you money. By leasing, there are no up front costs, meaning that you and your organisation can invest in a solution and then experience the savings or use the additional profits to pay the future lease rentals.
By leasing, you can accurately budget over a set period of time, allowing you to know exactly how much your telecoms equipment and solutions are costing you.
All of the payments made under a lease agreement are treated as an operating cost and therefore reduce the taxable profit of the business by 100% of the payments.
By leasing your communications equipment, you and your organisation protect your other lines of credit, such as loans or overdraft facilities, and conserve any available capital, thereby matching the funding to the working life of the equipment. In addition, leasing can ease the strain on working capital and provide finance with no deposit, leaving you with more reserves to invest in profit making activities.
Payments can match the cash flow of the business, being made monthly or quarterly to suit your cash flow. One of the most common reasons quoted for companies failing is bad management of cash flow. Leasing helps you to manage your cash flow more effectively.
Sir George Monoux College turned to 1st Communications to install a new Nortel BCM 200 on to their network. More »