IT leasing is very popular among Canadian businesses.
The obsolescence of technology is a major issue for companies when they have to think about IT investments. Do they have to buy themselves the equipment or should they ask for a bank loan? The main concern is how to stay competitive without burning your budget ? Hopefully, others alternatives are available for enterprises. In Canada, the leasing financing is the most popular. Although, another new way of leasing starts to spread in Canadian financing, the cloud financing.
What does leasing IT equipment mean? Precisely, it means that you don’t buy directly the assets from the supplier but you rent it. The company has also the opportunity to purchase the equipment at the end of the lease. Leasing technology is still powerful in Canada because of its several advantages:
- Money stays in the business
- No need of bank loan
- Leave bank lines for emergency
- Easy access
- Tax deductions (most of them)
- Profitable in short and long term
- Payment flexibility by company profile
In addition, Canadian leasing is available in two types, capital and operating. Capital lease is long-term lease where the lessee can own the assets at the end of the term. Operating lease is a short-term lease and at the end of the term the equipment remains with the lessor but the lessee has multiple option: return, purchase or upgrade the assets.The better option for financing IT is operating lease because is short-term, lower cost and flexible.
Cloud financing a new form of technology leasing
Cloud computing is one of the new symbol of mobility. Because of its primary use – the capacity to access computer resources as a service – it make senses that cloud computing become a financing option.
Canadian enterprises are really fond of the cloud financing, especially start-up because they save money, space and more:
- No purchase of IT equipment
- Low investment
- Upgrade the assets
Think about it. The cloud service provider own the assets so it’s less worries for the companies and more money to save. But it’s important to select carefully the provider and to negotiate a service level agreement (SLA) to avoid bad surprises.
Leasing IT equipment whatever is it with an IT equipment supplier or by cloud financing, it will be always profitable for the company if it set the right terms with its lessor. Cost savings and performance are the keys to an efficient IT financing.
Another way to save money from IT assets is by using Cimpl. This is the solution to save costs in telecommunications and IT and to manage the use of the assets. Cimpl is all-in-one software that allow you to connect the information, clarify you data and control all your business assets, the use and costs very easily. IT cost management in Canada is just simple.
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