Leasing vs Purchasing
Report on Leasing vs. Purchasing The benefits of leasing Computer equipment vs. purchasing
Summary
The company needs to upgrade its computer equipment. There are two upgrade paths to consider. In this proposal, we demonstrate how equipment leases take advantage of the benefits of reduced depreciation and taxation, easy scalability, reduction of IT staff usage, reduced energy costs, and reduction of capital spending. The company can free up money overall and maintain better control of the IT budget by leasing. The cost of equipment is spread out over a 3-year period by leasing. There are no disposal fees because the leasing company will be responsible for the equipment leased. By replacing the current sever setup ( the company has over a dozen machines running 24 hours every day), with new leased IBM compact server, we will cut power costs by up to 50%.
Contents Summary 2 Introduction 4 Discussion 4 Requirements Scope and Background 4 requirements to be achieved: 4 several leasing and finance companies with the best solutions for the company 4 Salary Expense Before Leasing fig 1 5 Salary Expense After Leasing fig 2 5 Leasing and Financing Programs 7 Leasing and Financing fig3 7 benefits of hiring a leasing company: 8 Conclusion 9 Bibliography 10 Appendix A 11
Introduction
This report explores the methods other companies use to conserve working capital. The recommendation is to lease to keep the company at the forefront of the technology curve, and keep working capital free. The company will also have the option to upgrade equipment when the next advancement occurs at a fraction of the purchase price of the same equipment. Leasing computer equipment and technology protects the company from equipment obsolescence. In the past, we have purchased all of our IT equipment. This strategy has periodically put a drain on working capital. This type of bulk spending leaves the company in a weak financial
Summary
The company needs to upgrade its computer equipment. There are two upgrade paths to consider. In this proposal, we demonstrate how equipment leases take advantage of the benefits of reduced depreciation and taxation, easy scalability, reduction of IT staff usage, reduced energy costs, and reduction of capital spending. The company can free up money overall and maintain better control of the IT budget by leasing. The cost of equipment is spread out over a 3-year period by leasing. There are no disposal fees because the leasing company will be responsible for the equipment leased. By replacing the current sever setup ( the company has over a dozen machines running 24 hours every day), with new leased IBM compact server, we will cut power costs by up to 50%.
Contents Summary 2 Introduction 4 Discussion 4 Requirements Scope and Background 4 requirements to be achieved: 4 several leasing and finance companies with the best solutions for the company 4 Salary Expense Before Leasing fig 1 5 Salary Expense After Leasing fig 2 5 Leasing and Financing Programs 7 Leasing and Financing fig3 7 benefits of hiring a leasing company: 8 Conclusion 9 Bibliography 10 Appendix A 11
Introduction
This report explores the methods other companies use to conserve working capital. The recommendation is to lease to keep the company at the forefront of the technology curve, and keep working capital free. The company will also have the option to upgrade equipment when the next advancement occurs at a fraction of the purchase price of the same equipment. Leasing computer equipment and technology protects the company from equipment obsolescence. In the past, we have purchased all of our IT equipment. This strategy has periodically put a drain on working capital. This type of bulk spending leaves the company in a weak financial
Bibliography: Aldridge, R. (2005, September). The ABC 's of technology leasing . Technology & Learning , pp. 25-28. Contino, R. (2006). The Complete Equipment Leasing Handbook. Sarnac: AMACOM. Couretas, J. (1997, April 1). Leasing: Technology management tool. Crain 's Small business , 5 (3), p. 1. Kehrer, D. (2006). Guide to Leasing Computer and IT Equipment. Retrieved July 25, 2009, from Work.com: http://www.work.com/leasing-computer-and-it-equipment-1000/ Leasing can help manage changing technology Mohamed, A. (2005, March 29). Holiday Group halves IT costs by leasing computers an software. Computer Weekly , p. 24. Nevitt, P., & Fabozzi, F. (2000). Equipment Leasing. Somerset: Wiley, John & Sons, Incorporated. PC Mall Leasing Options. (2009). Retrieved August 7, 2009, from PC Mall: http://www.pcmall.com/pcmall/promotions/custom~p~zero_apr.asp Wolf, J