subject: Get your business started - renting computers [print this page] Get your business started - renting computers
When it comes to getting a loan as a start up business, it seems the doors are always closing. Many banks and financial institutions are hesitant to lend money to a business without an established credit history. But it's usually when you're starting out that you need the most financial support.
For many sole traders, the most essential piece of equipment you'll need is a computer to get your business running. A good machine could set you back a few thousand dollars before you ever get your first job or receive your first payment. You can avoid starting out in the red when you choose to rent a computer or laptop instead.
How it works
By choosing to hire a laptop or computer for your business, you're paying for the use of the equipment rather than owning it yourself. You're free to use the machine as you need it for work and instead of paying the few thousand dollars straight up, you'll be making affordable monthly payments across a fixed term. At the end of the lease, you can hand back the equipment or upgrade to something new.
Why it works
For small businesses such as sole traders, this is especially helpful as it helps manage your cash flow right from the start. By making smaller monthly payments as you go, the computer can pay for itself as you'll be generating revenue to cover the costs from the start. This keeps your accounts healthy and leaves money in the bank for other things. In many cases, your monthly payments can be deducted as a business expense - so you may be able to claim it off your business tax.
Tips to get started
As with all financial decisions involving your business, good planning is important. Here are some tips to keep in mind:
- Speak with your accountant - a financial expert can give you the best advice as to whether renting is a good option for your start up. They will also be able to let you know if you can deduct the payments as monthly expenses.
- Compare quotes - if you're looking for cheap laptop hire, get a quote that covers a number of different lease terms. That way you'll be able to see your individual monthly payments and how much you'll end up paying back at the end.
- Consider your end of lease options - be aware of what your options are at the end of your lease term. Typically, you'll be able to return the equipment, upgrade and sign a new lease or offer to purchase the equipment at a fair market price.
