Introduction
There is no situation where renting is worse than buying. This is a fact even when talking about offices. The ideal scenario is renting offices and the best of the best is renting asset that pertain to offices.
If you still have some doubt, then we want to present you with some points to make you change your mind. Leasing or renting assets has other advantages apart from the said one of reducing the amount spent on the assets. They range from tax advantages, which yes you read it correctly, to ease.
Saving on Capital
When you have capital for your business you proceed to spend it on things that you deem necessary and before you know it the bulk of your capital has been eaten up. Another thing that you can do to try and prevent the use of much of your working capital is to lease as opposed to purchase. In this way, you can devote your fund for such intangible things like advertisement, study, etc.
Saving on Credit
New business calls for a line of credit from the bank. This implies that the credit limit will be incurred if the business purchases everything ranging from the office to the marketing. Hence, to retain extra credit and put it where it can help increase business, companies should lease their assets from leasing companies.
Multiple Options
Lease is always a topic that is accompanied with vast supply offers. When you have read all of them and have discussed their contents with the different leasing companies you can make a decision on one lease. Moreover, if you are not happy with the products, there is an option of making a decision to bring the lease to an end. On the other hand, when a person owns a particular product, he cannot ‘sample’ the product as he deems fit in the same way.
Tax Deferrals
When a company chooses to lease an asset instead of buy it, there is an added benefit: They cannot afford to pay for the sales tax or any other taxes at the time of purchasing the above said asset. These taxes are spread or integrated into the monthly lease payments throughout the entire time of the lease. This is especially beneficial to the company in its financial aspect because they avoid paying a considerable amount of taxes in one setting; thus, they can effectively plan their cash flow.
Inclusion of Services
It is noticeable that leasing companies have this policy that all services like installation, replacement, maintenance, and consultations must be included in the leasing. Thus, there are no hidden costs for installation because the poles are installed on your walls, and minimal maintenance costs. Just as when you hire out a particular product, the owner of the product is held responsible for the product.
Technological Advancements
You have to realise that when you pay for a product instead of paying a certain amount to lease a product you will not be able to continually update it. Such is the case why renting is preferable to buying. In this case, once you have leased, you can simply ask the owner of the property to refurbish it at a minimal cost as is provided by the fact that leasing implies the tendency to change something with very little of an added cost compared to the purchase of an entirely new good. The others that I can suggest are, you may simply terminate the lease and instead, find one that has better offers.
Expert Assistance
The companies who lease have some obligations that they have to meet and these obligations require that each of them has to comprehend their services well. Suppose there is the intention of purchasing a new TV. You will engage in all forms of research and assemble all information about it before coming to this one. You most probably cannot do this for everything that is in your office.
Convenience
Simplicity can well be the major motivator for the purchase of anything in the whole wide world. So is it with leasing, rather than purchasing, the assets also true. The latter would be a piece of cake if each time you had to change offices, no items you possess ever had to be moved from one workplace to another physically.
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