Have you been in-the initial stages of starting a company and somewhat dismayed by the costs related to obtaining a new work-place up and running? Luckily, there are a variety of options and financial programs that will reduce the sticker shock a little. In this article, I'll examine one of these - flexirent - and help you determine if it is right for the new enterprise. Even as we all know, there's no conducting business in the contemporary world without the aid of computers (unless you're Amish), so you need the hardware. Let us just see if we can have it for you at a good price.
Computer leasing, for the uninitiated, works much like every other lease - a financing business makes a capital investment o-n an object, whether property, a car, or office equipment, and then your leaser signs an agreement to work with the object and pay frequent payments towards its cost. By the end of the lease contract, the leaser has the option to create a final payment towards the price of the thing and claim permanent ownership of it.
Computer leasing is a wonderful choice for your small business as it mitigates the first capital expenditure necessary to get a company up and running. Hardware costs could be falling, but when you factor in computers, pc software licensing, network items and the rest of the requirements for an electronic digital office, it could still be quite expensive to get up and running. Leasing allows new business people to spread that cost out as a regular expense.
Even better, there are many financial advantages to computer leasing in most stages of the business cycle. On average, the Internal Revenue Service allows the full a century write off of computer equipment payments on a 10 percent or FMV lease. This can be an important deduction come tax time. In-addition, most computer and technology rents do not carry a pre-payment penalty, therefore if the liquidity of the business enterprise improves, you're allowed to pay-off the lease early without any extra charges.
More details are available here.
One problem that many companies have with flexirent is the constant forward march of progress - nobody really wants to be caught in a lease with equipment that's behind the technology curve. Most trustworthy leasing companies allows you to pay off the rest of the lease amount as a deposit on new equipment if improvements are essential. Hence, a company manager can continue running leases forward, maintaining their office equipment up to speed using their competitors without creating a great capital investment.
Computer leasing, for the uninitiated, works much like every other lease - a financing business makes a capital investment o-n an object, whether property, a car, or office equipment, and then your leaser signs an agreement to work with the object and pay frequent payments towards its cost. By the end of the lease contract, the leaser has the option to create a final payment towards the price of the thing and claim permanent ownership of it.
Computer leasing is a wonderful choice for your small business as it mitigates the first capital expenditure necessary to get a company up and running. Hardware costs could be falling, but when you factor in computers, pc software licensing, network items and the rest of the requirements for an electronic digital office, it could still be quite expensive to get up and running. Leasing allows new business people to spread that cost out as a regular expense.
Even better, there are many financial advantages to computer leasing in most stages of the business cycle. On average, the Internal Revenue Service allows the full a century write off of computer equipment payments on a 10 percent or FMV lease. This can be an important deduction come tax time. In-addition, most computer and technology rents do not carry a pre-payment penalty, therefore if the liquidity of the business enterprise improves, you're allowed to pay-off the lease early without any extra charges.
More details are available here.
One problem that many companies have with flexirent is the constant forward march of progress - nobody really wants to be caught in a lease with equipment that's behind the technology curve. Most trustworthy leasing companies allows you to pay off the rest of the lease amount as a deposit on new equipment if improvements are essential. Hence, a company manager can continue running leases forward, maintaining their office equipment up to speed using their competitors without creating a great capital investment.
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