Sure, leasing IT equipment can potentially save you headaches,
but is it all sunshine? Arentsen's July 2000 report on the IT
leasing industry points out many advantages to leasing IT
equipment, but it also sheds light on some drawbacks.
For instance, once you sign your name on the dotted line,
you're locked into that lease. If you realize you aren't
really using the equipment and determine you just don't need
it, you still have to pay. (When you cancel a lease, you usually
end up with stiff penalties.) Drawbacks can also hinge on the
specific piece of equipment you're interested in leasing.
Case in point: Dennen says he's been happy with his lease
and his relationship with OneCore. He admits he won't consider
leasing equipment such as PCs, however. While he believes his phone
system will suit his company's needs just fine when the lease
reaches its end, Dennen doesn't want to run the risk of having
outdated computers in his office. "Even with a two-year lease,
PCs may be obsolete by that time. It makes more sense to us to
purchase the PCs and use a program, like Gateway's, where we
can trade them in toward a new purchase in a year or so," he
explains.
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As equipment leasing earns its reputation as the "road most
traveled," you'll probably discover that it beats
purchasing when you need to get new technology-based equipment for
your company. But despite Dennen's positive experience and
leasing's growing popularity, you should always measure the
pros and cons of leasing for each piece of equipment you're
considering. Whether you lease or buy, or come up with a
combination of both options that gives you the best of both worlds,
the way the puzzle fits together is different for each
business.
Originally published in the January 2001 issue of Entrepreneur Magazine
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