IT Equipment Financing

You may have just purchased all new computers for the office and then realized that the second that they were installed, they were considered obsolete. IT equipment is ever evolving, we know this to be true. It is in your best interest to make sure that your business is on the forefront of these changes by upgrading your equipment on a regular basis. But paying cash for new equipment may not be the best idea if you plan on replacing in two years. That is why many businesses turn to financing for their IT equipment.

Benefits of IT Equipment Financing

Here are a couple of quick considerations for why you may want to finance or lease your IT Equipment:

Preserve Cash
Flexibility of Keeping or Returning Equipment
Avoid the Pitfalls of Technical Obsolescence
Tax Benefits
Improves Debt Ratios
Fixed Rate and Payment Options
100% Financing

As always, and especially today, cash is king. If you can manage to finance your largest assets and save your cash for other working capital needs, your practice will be able to stay ahead of the pack. The most important thing to keep in mind is that your IT equipment is an income producing asset, and it will pay for itself.

Types of IT Equipment

Generally speaking, most IT equipment is considered to be good collateral, but only for a short period of time. Larger pieces of equipment like the ones mentioned below can be financed from 1 to 3 years:

Computers
Software
Copiers
Monitors
Scanners
Servers
Presentation Equipment

Unless you know ahead of time that you will be keeping your equipment for certain, the best idea would be to choose a lease financing option that gives you the flexibility to keep or return the equipment at the end of term. This will allow you to avoid the pitfalls of technical obsolescence. And if you can afford the payments, it may also be a good idea to choose a shorter financing term in order to avoid committing your business to a long term lease or loan, only to find out that you would like to swap the equipment our for something new.