Benefits of Leasing
The technology lease vs. buy question cannot be answered exclusively by using a financial formula. Employee efficiency, equipment lifespan, competitive advantage and even customer perception are just a few of the factors in the decision process that ultimately is intended to help achieve your business objectives. Layer on that the differences in lease terms between best of breed manufacturers and proper approach becomes more difficult to envision.
Here is a quick set of guidelines that will help you think about the lease vs. buy question for your organization:
- Preserve Capital: Leasing keeps capital in your business.
- Better predict cash flow: Leasing allows for more accurate forecasting of free cash flow and simplifies the budgeting process.
- Offset your taxable profits: In some cases Leasing costs can be used to lessen your organization’s taxable profit.
- Minimize “soft cost” capital outlays: Expenses such as software and shipping can be built into the lease, freeing up more capital.
- Preserve your senior credit lines: Leasing has no impact on an existing line of credit.
- End Technology Obsolescence: Chances are your technology will be obsolete in a few years, you can keep your technology refreshed with upgrades at key milestones in the lease.
Beyond leasing, The NFS Factor in the lease vs. buy decision:
- 100% Financing available: Eliminate the need for upfront deposits as in some cases NFS will lease soft costs, unlike most other leasing companies.
- We take on story credits and complex relationships: NFS helps even the most complex and financially challenged businesses achieve their technology and financial goals.
- Flexibility: We help create flexible payment terms to meet specific budgets and financial situations.
- Many Manufacturers, one lease: NFS takes the complexities out of leasing. You choose the technology, we provide the financing.
There are many benefits to leasing vs. buying technology — but also many questions. The bottom line is every organization is unique. At NFS we have worked with thousands of organizations from venture-backed startup to Fortune 1,000 to help make the right decision. We’ve seen it all and are ready to put our years of experience to work for you.