Should I buy or should I lease?
What is it about leasing equipment that some find so “unattractive”?
The payments are cheaper, you can upgrade to the very latest equipment every few years, and a lease is often easier to get than a grant. So why doesn’t everyone lease?
Leasing has its pros and cons. Is leasing right for you? The answer to this will depend on your individual circumstances.
Following are some reasons why you should give leasing some consideration:-
Faster implementation
Buying capital equipment often involves a lengthy budget approval process. Choosing leasing can help shorten the process, accelerating the implementation of the solution. Bundling maintenance into the lease may also save additional headaches.
Minimized impact on Capital Budgets
Leasing is a great way to minimize the impact on your capital budgets, since month-to-month payments usually come out of the cash budget.
Conserves your Cash flow
You can acquire laboratory-boosting assets now without draining your cash flow. Leasing frees up lines-of-credit and other sources of funding so you can keep your laboratory ticking along while benefiting from the innovation and efficiency that the leasing of new equipment provides.
Flexible Payment Options
Different payment structures can be tailored to fit your specific needs. For example, periodic payments can be structured to increase, decrease or stay constant over time. Fixed lease payments, with terms from 2 to 5 years, mean you can plan with certainty and spread payments over your selected term.
Bundle Add-on Equipment
You combine a range of items from a single supplier into one lease with easy combined monthly payments.
Better Protection against Technology Obsolescence
Out-of-date technology and equipment can slow you down. Leasing assets and equipment over their productive life allows you to upgrade to the very latest equipment during or at the end of the term. It’s a smart way to keep pace with technology and stay ahead.
Makes Tax-Time Easier
Monthly lease payments maybe 100% tax deductible – if the equipment is used solely for laboratory purposes. You don’t have to account for depreciation and you can claim a credit for the GST component as well. As a fully deductible operating expense for tax purposes, the actual cost to the laboratory may be less than the actual payments.
Reduced Risk
At the end of the term, leasing gives you the option of simply returning the equipment, purchasing it outright or extending the contract, making it easier to cascade, upgrade or dispose of your equipment.
Lower Total Cost of Ownership over the life of the Solution
A lease lets you realize considerable savings compared to an outright purchase or scheduled purchase payments, because you pay only for the use of the equipment.
Have we opened your mind to leasing? For more information speak to your local representative or contact us at info@genetargetsolutions.com or 02 8090 2675.
(To assist you in your analysis of the financial implication of the purchase versus lease decision, a comparison calculator worksheet will soon be available.)