Dear boss,
I tried to writedown the comparison between leasing and buying computers. Some sentence from internet and from some my experience. Perhaps I forget some benefits but I hope it useful for you to decide the good way, please consider.
Advantage of Leasing
1. This method is good for equipment that needs to be updated often because you can acquire updated technology easier and quicker.
2. With leasing, you don’t pay for maintenance, repair cost.
3. Predictable the payment.
4. Leasing is often 100% tax-deductible as an operational expense.
Disadvantage of leasing
1. You'll pay more in the long run. Ultimately, leasing is almost always more expensive than purchasing.
2. You're obligated to keep paying even if you stop using the equipment. E.g. if we terminate before the leasing contract term.
Advantage of buying.
1. It's easier than leasing. Buying equipment is easy--you decide what you need, then go out and buy it. And you can buy by the numbers when you need. But leasing the numbers is you need is important with the price,tax, interest and term of contract.
2. You call the shots regarding maintenance. Equipment leases often require you to maintain equipment according to the leasing company's specifications, and that can get expensive. When you buy the equipment outright, you determine the maintenance schedule yourself.
3. It's your assets, such as computer equipment, in the first year. With most leases favored by small businesses--called operating leases--you can only deduct the monthly payment.
Disadvantage of buying.
1. The initial outlay for needed equipment may be too much. Your business may have to tie up lines of credit or cough up a hefty sum to acquire the equipment it needs. Those lines of credit and funds could be used elsewhere for marketing, advertising or other functions that can help grow your business.
2. Eventually, you're stuck with outdated equipment. As I mentioned earlier, computer technology becomes outdated quickly. A growing small business may need to refresh its technology in some areas every 18 months. That means you're eventually stuck with outdated equipment that you must donate, sell or recycle.
Dear boss,I tried to writedown the comparison between leasing and buying computers. Some sentence from internet and from some my experience. Perhaps I forget some benefits but I hope it useful for you to decide the good way, please consider.Advantage of Leasing1. This method is good for equipment that needs to be updated often because you can acquire updated technology easier and quicker. 2. With leasing, you don’t pay for maintenance, repair cost.3. Predictable the payment.4. Leasing is often 100% tax-deductible as an operational expense.Disadvantage of leasing1. You'll pay more in the long run. Ultimately, leasing is almost always more expensive than purchasing.2. You're obligated to keep paying even if you stop using the equipment. E.g. if we terminate before the leasing contract term.Advantage of buying.1. It's easier than leasing. Buying equipment is easy--you decide what you need, then go out and buy it. And you can buy by the numbers when you need. But leasing the numbers is you need is important with the price,tax, interest and term of contract. 2. You call the shots regarding maintenance. Equipment leases often require you to maintain equipment according to the leasing company's specifications, and that can get expensive. When you buy the equipment outright, you determine the maintenance schedule yourself.3. It's your assets, such as computer equipment, in the first year. With most leases favored by small businesses--called operating leases--you can only deduct the monthly payment.Disadvantage of buying.1. The initial outlay for needed equipment may be too much. Your business may have to tie up lines of credit or cough up a hefty sum to acquire the equipment it needs. Those lines of credit and funds could be used elsewhere for marketing, advertising or other functions that can help grow your business.2. Eventually, you're stuck with outdated equipment. As I mentioned earlier, computer technology becomes outdated quickly. A growing small business may need to refresh its technology in some areas every 18 months. That means you're eventually stuck with outdated equipment that you must donate, sell or recycle.
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