As businesses approach the end of financial year, they can often find they have surplus budget remaining from their allocated annual spend. The experts at Dick Smith say before investing these funds in depreciating assets like laptops or PCs for the office, consider your finance options, particularly renting or leasing.
The benefits of renting include:
- Management of cashflow: With a rental finance agreement, there’s no large cash outlay upfront which is good for your cash flow.
- Easy monthly payments: Spread the cost of your technology over its useful life and enable payments to be factored into your business model.
- Tax-effective: If you’re running a business or use your equipment for work or investment purposes, your monthly payments could be up to 100 percent tax-deductible. Ask your accountant or tax adviser for advice.
- Update to the latest and greatest: By choosing to rent, you can easily keep up to date as technology changes.
The benefits of buying include:
- Ownership: When you buy, you own the equipment and can modify it to suit your individual needs.
- Pay less long-term: When buying equipment outright, your cash outlay is often less over the life of the equipment than when you rent.
- Government rebate: The Government has recently announced a number of incentives for small businesses which you may eligible for if you purchase equipment outright
