Renting IT equipment: a profitable financing solution

As a business owner, one of your top priorities is to ensure that your staff has access to modern, efficient IT equipment. To finance it, have you considered renting it?

This financing solution is particularly well-adapted for equipment in this sector, which is subject to constant change and rapid obsolescence. On the other hand, purchasing your hardware is a much less flexible option, and therefore also a more expensive one.  Read on to discover more about your IT financing options.

Financing your IT equipment: a challenge for every company

The use of computer equipment is not limited to IT professionals: these days, every company needs to have IT infrastructure, be it large or small. From craftspeople and technicians who use computers to create quotes and invoices, to start-ups that use innovative communications software… no one is exempt from needing IT equipment.

And yet, acquisition of the computer equipment that is so necessary to establishing and running a company can represent a significant cost. In addition to desktop work stations, each of which costs at least several hundred euros, one must also consider the cost of the various accessories (mice, keyboards, headphones, etc.), infrastructure (servers, storage solutions, etc.), possibly laptops or tablets (according to the needs of each company) and also software (programs, applied software packages, etc.). In addition to these initial costs, you must account for replacements due either to use or to the need to adapt to new technological advances.

Purchasing and then regularly re-purchasing your computer equipment may be the first financing solution that comes to mind. It is not, however, the only solution, and is far from being the obvious choice when you consider the advantages offered by other options.

Purchasing your IT equipment is not the only way to finance it

Leasing or renting IT infrastructure for your company is not only possible, it’s the common norm these days.

Renting (or financial lease): you have a piece of equipment for one or more years, in exchange for a fixed monthly rental payment, as stated in your contract. The loaning entity maintains ownership of the product, and at the end of the contract you return it. Then, if you wish, you can set up a new contract.  You have the option, each time, of renting a new piece of equipment and therefore changing the product.

Renting with services (or operational lease): this is a form of financial leasing with added services such as installation, cleaning, and maintenance of equipment.

RENTing: flexibility and predictability advantages

How to choose between different financing methods? Keep in mind the general advantages offered by leasing company equipment as compared to purchasing:

• Renting allows you to spread out your costs: by choosing to buy your IT equipment, you are making a significant initial investment, which could put you in a difficult situation if maintenance or replacement expenses occur earlier than expected. On the other hand, when renting, the only investment you’re making is a constant monthly payment.  You won’t run the risk of any unexpected costs that could cause you financial difficulty, either initially or over the course of your rent.  Furthermore, this predictability makes it easier to manage your company’s budget.
• With renting, your company gains flexibility: indeed, with renting you commit to keeping a certain product only for a defined  period of time.  At the end of the contract, if you wish or need to change your equipment (for whatever reason) you have the option.

A financing solution that is particularly well adapted for computer equipment

This flexibility is crucial in sectors that are subject to significant technological advances and new trends, such as information technology.

In fact, the more often you need to renew your equipment, the more financially beneficial renting can be. For example, if you have to replace a work station after only two years, it will be less expensive to rent one instead of purchasing two new products in a short period of time.

There are also many other reasons you may wish to renew your IT infrastructure.

• Access to equipment that runs new software and has better performance, in order to facilitate the work of your staff and increase productivity, or to open up new possibilities to your company.
• The need to replace obsolete material: computers, in particular laptops, tend to slow down over time.
• Finally, in the IT sector, you need to respond to the desires of your staff: your employees, especially young ones, want to work with modern equipment with the latest, cutting-edge technology.. In other words, having high tech, modern equipment increases your chances of attracting and retaining young talent.