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The Advantages of Renting vs Buying IT Equipment

Whether you are starting out or growing a business, cash is often in short supply. One way to spend less is to rent your IT equipment instead of buying it.

Linkpro offers a comprehensive portfolio of IT equipment for both purchase and rent. We can help you decide which option best suits your business needs, whether it be rental, ownership or a mix of both.

Renting computers, servers, or telephones offers a number of critical advantages:

1. No Upfront Investment

The cost of IT equipment can quickly add up to an expensive investment that must be carefully planned. Placing your IT equipment on a rental however does not require a significant cash outlay from your cash flow and, not having a large portion of money tied up in your IT equipment frees up funds for you to pursue opportunity and maintain other important parts of your business.

2. Preserve Your Credit

While renting can free up working capital for use in other areas of your business, it also saves you from having to take out a large loan to buy the IT equipment outright and reduces your debt exposure. You will be able to use the available credit from your bank for additional working capital, operations, expansion and acquisitions instead.

3. Easier Budgeting

With a rental agreement, monthly rental costs are usually fixed so you’ll know exactly how much you are spending on IT equipment for a set period of time, which helps you to budget for the future. If a machine breaks down unexpectedly your maintenance plan kicks in so you know you won’t have to suddenly spend thousands from your savings just to keep your business running.

4. Tax Benefits

Rentals reflect as a tax deductible operating expense on your income statement, rather than an asset on your balance sheet if you owned the equipment. You are not required to make a lump sum VAT payment at the beginning of the rental period but rather, VAT payments are spread out monthly over the period of the rental agreement. It is then regarded as input VAT and can be written off against any output VAT collected.

5. Flexibility

When it comes to upgrades and the addition of more technology to meet your business’s needs, a flexible IT rental solution allows you the freedom to expand and grow your business at your own pace.

6. Built in Maintenance

Your IT rental agreement includes installation, maintenance and support services. This directly improves your service quality to your clients because you won’t have to try to do it yourself. And, if the rental equipment breaks down, we will repair or replace it removing the need for additional capital outlay.

7. Latest Technology

Technology changes rapidly so something you bought two years ago may already be out of date. IT Rentals make it easier for you to keep up with technology and you have access to a higher standard of equipment which might be too expensive for you to buy. Equipment can also easily be upgraded without having to spend large sums of money whenever the technology being used needs a boost. When you renew your rental agreement your IT equipment is upgraded so you don’t end up paying for obsolete technology.


Explore how rental agreements can help grow your business