Benefits of renting office equipment
It is obvious that the use of a piece of equipment is far more important to the production of income than a piece of paper conveying title to the equipment. So why spend valuable capital on equipment that can be rented with affordable monthly payments?
Here are some important benefits of renting technology equipment:
- High technology equipment quickly becomes outmoded and obsolete. Renting this type of equipment offers a low entry-level cost. Renting further provides the freedom to upgrade or change equipment when the need arises.
- Inflationary price increases have priced certain assets virtually beyond ownership possibilities.
- You can structure financing payments to accommodate budgetary and cost constraints.
- Since a rental is an expense, it is 100% tax deductible. Operating rental agreements generally do not require balance sheet disclosure, and hence will not affect the financial gearing of the company. In addition, it will have a marginal impact on the return on assets managed ratio.
- Renting gives your institution flexibility. Agreements can be structured to best suit institutional requirements in terms of repayment periods and repayment structures. Contract periods can further be tailored to suit the useful life of user groups, asset types or individual pieces of equipment.
Further benefits include:
- Capital can be reinvested into core business to generate revenue instead being tied up in depreciating assets.
- There is no longer a need to maintain an asset register of depreciation schedule.
- Equipment life is no longer determined by depreciation periods.
- You have the option to include insurance of the asset at very competitive rates.
