2020 was a difficult year for individuals and businesses alike, and though it would appear that the COVID-19 pandemic could soon be brought under control due to the incredible work of the world’s scientists, life is unlikely to return to normal immediately.
Businesses in the UK will still have to overcome a number of operational and financial hurdles, especially given the ramifications of Brexit are not yet known, and so a cautious and altogether careful approach is required. This is true for every part of your business, whether it be hiring new employees, selling new products or making use of different types of equipment. For the moment, though, let’s focus on the latter.
Buy or lease?
Equipment can be incredibly costly when bought outright and, while it might seem like a sensible option to purchase a piece of kit so you’ve got it in-house and can therefore make use of it at all times, it is vital to take a long-term approach. You have to think about whether your business is likely to grow and alter, which could subsequently lead to some equipment becoming redundant, and also consider whether the equipment you purchase is liable to be usurped by something more efficient.
With that in mind, here are three key reasons why leasing could be a superior option for your business as you look to make purchasing decisions for 2021.
1. It can enhance your business immediately
This is, of course, true with regard to buying a piece of equipment, but by leasing kit, you will save huge amounts of money at the outset. This means you will be able to invest in other areas at the same time.
2. It means you aren’t tied to one way of working
Leasing equipment can be a good means of incorporating a trial and error approach into your business. Trying out different approaches is far easier if you are able to send the equipment back and aren’t required to try and sell it.
3. Applying for leased equipment is incredibly easy
There was a time when buying or leasing equipment was a convoluted, drawn-out affair, but that is no longer the case. Applying for finance is incredibly simple, and keeping track of what has been spent and what is owed is also very easy. It is worth noting, however, that with regard to items regarded as ‘big ticket’ – those that tend to cost north of £200,000 – the process may take a little longer, given that additional information will likely be required, but even this can usually get over the line in a week or so.