Unfortunately, keeping up with the times can be expensive, and many businesses can’t afford to purchase the software they need to stay competitive in their industry outright. Instead, software leasing is a smart business move for companies looking to stay current and maintain cash flow. In addition, leased technology allows businesses to pay a monthly fee instead of a large purchase price, making it a realistic option for more companies.
5 Ways Software Leasing Can Benefit Your Business
1. Ability to Afford Current Software
Software becomes obsolete quickly, which means that the big-ticket purchase you just made may not be cutting edge in a few months. Most businesses can’t afford to be making software purchases outright as often as necessary to maintain industry relevancy. Most leases allow flexibility to increase application add-ons or upgrade the system to ensure you’re never behind the competition.
Additionally, through leasing, companies can afford the equipment they don’t have the cash flow to purchase upfront. Smaller monthly payments are beneficial for businesses that are just putting down roots or are experiencing economic setbacks.
2. Helps Control Your Cash and Credit
Having a set monthly payment to account for is more straightforward than working a hefty software purchase into the budget. In addition, businesses can better predict their month-to-month financial situation because they know that they will have a set fee to pay. Smaller monthly payments also keep you from using a credit line from the bank to finance the complete software package.
3. Simple Leasing Process
Lenders such as Noreast Capital Corp make beginning your lease as streamlined as possible. First, you’ll select the software you need; then, you’ll fill out an application stating how and where you intend to use it. The leasing company then performs a credit check to ensure that you can complete the necessary monthly payments for the software. Once the credit check has cleared and the terms agreed on, you’ll sign the lease form.
Most leasing companies will require a first payment and security deposit, and once you have paid these, the company will then purchase the software you will be leasing. After receiving and accepting the software, your equipment lease has officially begun.
4. Leasing Protects You From Inflation
Another benefit of leasing is the ability to lock in equipment at the current price. So while the amount you owe month to month will remain the same, you could end up with significant savings when your fixed rate is compared to the current dollar value.
5. Numerous Software Possibilities
Nearly all types of software can be financed, making leasing a practical move for any business owner. You can finance the technology you need to run your business, from accounting and business management software to help desk and scheduling applications.
The software you lease will end up saving or making you money in the long term. For example, technology such as warehouse management software and supply chain management software can quickly pay for themselves by helping mitigate product loss.
Business owners looking to stay competitive in their industry while optimizing growth should consider leasing instead of purchasing software. The ability to adapt and evolve in a constantly changing technological world is priceless.