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What are the benefits of leasing IT equipment?

We explore the many reasons why it makes sense, from reducing debt to simplifying support to ensuring your IT kit stays up to date.

Leasing hard assets isn't new. Businesses have been renting capital goods and equipment in much the same way they've been paying for their premises for years. Yet the market that facilitates it is changing.

Ever since IT began, banks have been reluctant to lend against software and services: they don't see them as assets they can repossess if the business falls behind on its payments. However, with a new range of funding brokers, and dawning appreciation for the fact that hardware is only half of the equation, things are starting to change.

Stretching the budget

Few businesses have their eyes on what would happen at the end of the term at the point of signing up. The primary benefit particularly for smaller players with limited budgets is getting access to the hardware without bearing the upfront cost.

Support benefits

The hardware remains the property either of the leasing company, or the underwriter that has provided the funding until the end of the term. While this may sound like a disadvantage, Khela believes there are benefits to renting rather than owning the equipment.

Financial benefits

Less obvious is the fact the leased equipment's depreciation is kept off the renting company's books. On a large site with several hundred seats, this can make a significant difference to the bottom line. So, too, can the ease with which IT managers can run their budgets.

Combined, the predictability of the leasing cost, the flexibility of the software options and the reliability of the backup and support are a tempting mix for businesses of all sizes.

For many, this is a selling point especially now that the Bank of England is starting to put up interest rates to tackle growing inflation. A regular business loan will usually be affected by any base rate rise, making the leased option cheaper with every augmentation.

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