Software can be expensive, especially for small and mid-sized businesses. To reduce their upfront expenses and avoid having to deal with outdated programs, many companies use software leasing instead of buying their programs upfront. There are leases for every situation, so you’re sure to find what you need.
The Top 4 Benefits of Software Leasing
1. Your Upfront Expenses Are Low
Equipment leasing is one of the most cost-effective ways of starting or expanding your business because it allows you to defer the cost of your tools. When you lease software instead of buying it outright, you only pay a small fraction of the price, and you can invest the rest of the money in other aspects of your business.
This is ideal for new companies because it allows them to start selling much faster, and it minimizes the need for debt and funding. It’s also a great option for people who would like to expand their company but can’t pay for all the equipment right away.
2. You’ll Always Remain Up to Date
Every few years, you’ll have to update the technology you use for your business. This is important for two reasons. Firstly, your company might grow or change its focus, and software that used to work well is no longer effective. Secondly, IT solutions change rapidly, so the old software won’t be up to date anymore, and it might put you at risk of a cyber attack or simply reduce your company’s efficiency.
When you buy expensive software, you might have to use it for many years. On the other hand, leased programs can simply be returned once the term is up. You can then either select different software or an updated version.
3. You’ll Have Support from the Leasing Company
When you buy software, you’re responsible for it. If something goes wrong, you have to deal with the technology company, and they might not provide you with the help you need. A lease makes things much simpler because you will always have someone to turn to if you run into issues. The account manager can help you get set up, and they can deal with any issues that crop up.
4. There Are Options to Suit Every Business
There are many different types of leases, so it’s easy for you to find something to suit your business. One of the most common options is the capital lease, also called the $1-Buy-Out lease, which is ideal for businesses that want to keep their equipment once the lease is up. If you’re not sure yet, you could opt for an operating lease, which might be shorter and more flexible.
You can also make a very specific agreement with software leasing companies. For example, seasonal businesses can pay more during the busy period than during the quiet months, or startups can delay payments for a few months.
Leasing software is a good idea for businesses that want to minimize their upfront expenses and remain flexible. Because there are so many options, almost all businesses can find a lease that suits their individual needs. If you need to gain access to software but you don’t want to buy it upfront, you should contact a leasing company and find out whether you’re eligible.