Computer equipment – from desktop PCs and laptops to routers, hubs and servers – can be expensive. It may be better to lease.

Leasing Computers advantages
Leasing a computer is another option, but make sure you understand the contract and who is responsible for repairs and what happens when things go wrong.

There are tax benefits for businesses who lease equipment but the support offered for leasing a computer varies from vendor to vendor. Some vendors not only supply the finance and the equipment but look after you if your equipment fails by providing a replacement. While other rental companies are just finance companies that use computer rentals as a means of making money; they don't really care to have you back in business if your equipment fails.

Computer leasing is good on the cash flow, as you pay by the month and have the option to buy once the lease is finished. However, leasing a computer often works out considerably more expensive than buying the equipment outright. For businesses that can deduct the total cost of rental, as opposed to depreciating the equipment, rentals can be a favourable alternative.

To find a rental company that will provide a replacement when your equipment fails, is an added bonus because you are guaranteed to have working equipment, for every day of your rental period and don't have to wait days or weeks to be back in business. You will need to read the terms and conditions of any rental agreement carefully.

Leasing Computers Disadvantages
It is also a consideration when renting, what happens when the lease is up and how much will it cost to keep my equipment. With all the data, work and so on - do you have the time to reformat hard drives, reinstall software and potentially lose some of your work in the transfer. Three years comes up pretty quickly, and if your computer is going to be central to your organisation then buying it outright or finding a favourable rental agreement is a must.

Renting a computer is considerably more expensive than owning a computer outright and because computers are so fast now, it is unlikely that in three to five years time that the computer will be useless. It will probably still be functioning quite adequately and could always be resold or given away to children or students.

Small computer shops may even offer service that are comparable to a rental agreement, in that they are able to repair your computer in a short time frame.