Do You Lease Or Buy Computer Equipment For Your Business?

[MarkB]

I’m in the process of applying to lease some better quality computer equipment from PC World which would be cost deductible for my company. In my mind I see the benefits as:

• Access to equipment I might not be able to afford in the short term
• An ability to offset the interest charges
• Accompanying support contracts which should allow future upgrades

I believe the interest charge is somewhere in the region of 16% per annum although I will see what kind of deal I can get when I get around to visiting the store. Does anyone have any strong views on leasing or buying computer equipment?

 

[Scott Kinnear]

Is there no business grants or funding you can get to help your business Mark? There's usually a council organisation that you can apply for a grant, it might help with costs towards equipment or other?

 

[MarkB]

Thanks @Scott Kinnear

I will check out and see if there are any small business grants available. I had not even thought of that route as my business is 4 years old - all the help I see tends to be for start-ups.

 

[Wills]

My equipment has a reasonably accurate life span, when doing the math on costs, ownership and end of life returns I found self financing to work best the return on cash investment if you have the cash of course.

 

[MarkB]

I was also looking at the tax savings when offsetting the cost of leasing against profits. However, in hindsight I think an outright cash purchase makes better sense from a financial standpoint. Thanks Wills

 

[Scott Kinnear]

Mark,

I went to a Business Grant Workshop before I started up my gardening business. there were people at the workshop already running but needed some more investment. they had not applied before, so their application would be considered.

If you got the grant and you closed your business within the first year, you have to pay the full amount back, if you closed in the second year you pay half of the grant amount back, and after 2 years you didnt have to pay anything. at that - you have to purchase whatever equipment or other first, get the receipts then give them the original receipts to which they will copy and give you back then give you the grant. it is because people were applying for grants, getting the cheque then getting the mates together and shooting the bar, drinks are on me. so they stopped it. They will also do a spot-check to see you still have the equipment or whatever it is you got the grant for, and didnt buy it to get the receipt then take it back to the supplier and get the money.

Sensible checks only to stop the scammers.. if people are getting the grant to genuinely help their business, then there's nothing to worry about.

At that - This is a Dundee Council Business Grant Initiative, Though there must be similar organisations in other councils.

 

[MarkB]

Cheers @Scott Kinnear

I will check that out

 

[sinemej]

Mark,

I went to a Business Grant Workshop before I started up my gardening business. there were people at the workshop already running but needed some more investment. they had not applied before, so their application would be considered.

If you got the grant and you closed your business within the first year, you have to pay the full amount back, if you closed in the second year you pay half of the grant amount back, and after 2 years you didnt have to pay anything. at that - you have to purchase whatever equipment or other first, get the receipts then give them the original receipts to which they will copy and give you back then give you the grant. it is because people were applying for grants, getting the cheque then getting the mates together and shooting the bar, drinks are on me. so they stopped it. They will also do a spot-check to see you still have the equipment or whatever it is you got the grant for, and didnt buy it to get the receipt then take it back to the supplier and get the money.

Sensible checks only to stop the scammers.. if people are getting the grant to genuinely help their business, then there's nothing to worry about.

At that - This is a Dundee Council Business Grant Initiative, Though there must be enpara similar organisations in other councils.

Thanks

 

[Alex777]

For my business, I try to purchase equipment, but sometimes I have to rent it for a while. But the financial department is fully equipped with both computers and the latest software https://provalisresearch.com/products/qualitative-data-analysis-software/, the data collection takes now a minimum of time. I am generally a supporter of the fact that the company would provide jobs and all that is needed for quality work.

 

[Employer]

Leasing equipment is a great way to help cashflow but it can be relatively expensive. Therefore it is only really of any use if you are going to get a greater return out of the cashflow saving than the cost of the leasing. Hope that makes sense lol

 

[Goingitalone]

My gut feeling says lease equipment because sometimes they come with a maintenance contract and the right to upgrade further down the line. You can also walk away any time.