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Should Your Company Rent, Lease or Own Technology?

Should Your Company Rent, Lease or Own Technology?

Technology is changing roughly every 12-18 months. So, it may seem like a slam dunk that your organization should be renting or leasing every single time. But this decision should not be made lightly, and you need to analyze many factors before pulling the trigger on one over the other.

In addition to you and your department head, the CFO and CIO should weigh-in on the decision. Why? Because they are both in tune with the financial position of the company and keep up-to-date on technology trends.

Below are a few questions to answer first and then, a deeper look into which option make senses given your answers.

7 Questions to Answer about Technology Equipment

  1. How long are you going to use the equipment?
  2. What is the state of your existing equipment and storage facilities?
  3. Do you have personnel that can maintain the equipment if some something goes wrong?
  4. Do you have sufficient, secure storage options for the equipment?
  5. Is your company’s cash flow and credit in good shape?
  6. If it is, are there other projects in front of yours?
  7. What is the demand for state-of-the-art equipment by your employees or attendees?

Once you have these answers in hand, you will have a clearer view about which option makes the most sense for your organization.

Renting Makes Sense When…

Renting technology usually makes sense when you need equipment for a short period of time (an event rental) or the use is seasonal (tax season) or project based (litigation support for a big trial). In addition, if your company wants to keep up with the latest technology trends, renting is a safe way to “try before you lease or buy”.

It may also be an option for business continuity such as when your office is inaccessible for several days or weeks due to an Act of God or man-made event.

Leasing Makes Sense When…

Leasing is a great option when you want the equipment for longer than 12 months but your organization does not want to outlay the upfront cost of purchasing equipment. In addition, you can budget your expense on a monthly basis with no surprises, as maintenance and replacement costs are integrated in the lease.

In addition, when your lease expires, there is the option of upgrading to the latest technology available, with no equipment to resell or dispose of.

Purchasing Makes Sense When…

Most companies purchase technology when they plan on keeping the equipment for a long period of time, use it often and/or want the tax benefits associated with depreciation of the equipment.

Of course, one factor to consider with a purchase is the total cost of ownership which includes maintenance, storage, insurance and personnel costs associated with setting up, striking, storing and maintaining your technology equipment.

Hartford Technology Rental Has Rental Options

We are a full-service company that offers competitive rental options (and some alternative leasing solutions). Our team will work with you regarding the best choice for your needs, including a new option we offer call Flex-Rent, that allows you to be charged only for the time you use the equipment (with minimal stipulations).

When you put our team at the center of your business strategy, a more streamlined approach in handling your technology needs begins. Contact us today at 888-520-5667 for more information.