Computer Leasing For New Businesses

Establishing a new business is in most cases a financially draining and time consuming task

, but can of course ultimately be hugely rewarding. As such, it is no surprise that in the face of an apparently turbulent financial environment, thousands of people still opt to set up their own companies.

There are myriad resources available which provide advice upon all aspects of business start-ups, guiding entrepreneurs from their initial concept through to the formal registration of their company. Given the nature of business today however, once registered there are still some serious decisions to be made which can have a major impact on the success, profitability and longevity of a new company. Unlike the actions taken prior to company registration: which follow a relatively standard procedure, many of the decisions required from freshly registered companies are much less clear-cut.

In any business keeping a close eye on cash-flow is important, in the case of new businesses however, controlling cash-flow in every way possible can be absolutely central. Keeping capital in the company is essential to ensuring stability and avoiding excessive borrowing, as such it is prudent to look at minimising expenditure wherever possible. It is with this in mind that leasing presents itself as a particularly attractive prospect compared to the cash heavy option of outright purchase.

Leasing and renting are established practice with regard to office space and company cars due to the high outright cost of purchasing property or vehicles. The cash preserving benefits of leasing do however extend beyond these two commonplace forms, with IT equipment leasing standing out as a particularly useful option for recently established businesses. Computer hardware, software and peripherals are an integral constituent of the modern office set-up and are very often both costly and prone to heavy depreciation over time.

When opting to lease IT equipment, not only is the initial outlay considerably lower, but depreciation is no longer a factor as there are often attractive upgrade options part way through the lease contract. Obviously, choosing to lease rather than purchase IT equipment is only one of the many decisions that must be made during the all important start-up stage of a company, but the cash flow benefits are likely to ease the pressure in other areas.

It is also worth noting that leasing is by no means the best course of action in every instance, but for those looking to maintain favourable cash flow it without doubt has numerous merits.

Copyright (c) 2009 Mark Farrell

by: Mark Farrell

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