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, other alternatives are available for enterprises. In Canada, leasing financing is the most popular. Although, another new way of leasing has started to spread in Canadian financing; The Cloud Financing.
What does leasing IT equipment mean? Precisely, it means that you don’t directly purchase the assets from the supplier, but you rent it. The company also has 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 for a bank loan
- Leave bank lines for emergencies
- Easy access
- Tax deductions (most of them)
- Profitable in short and long term
- Payment flexibility by company profile
In addition, Canadian leasing can be done in two ways, capital and operating. Capital lease is a long-term lease, where the lessee can choose to own the assets at the end of the term. An operating lease is a short-term lease and at the end of the term, the equipment remains with the lessor but the lessee has several options: return, purchase or upgrade the assets. The better option for financing IT is typically an operating lease, since it's short-term, costs less, and is flexible.
Cloud Financing: A New Form of Technology Leasing
Cloud computing is one of the new symbols of mobility. Because of its primary use – the capacity to access computer resources as a service – it make senses that cloud computing became a financing option.
Canadian enterprises are really fond of cloud financing, especially start-up businesses since they save money, space and more:
- No purchase of IT equipment required
- Low investment
- Can upgrade your assets
Think about it. The cloud service provider owns the assets, so it’s less for companies to worry about, and more money to be saved. But it’s important to carefully select the provider and negotiate a service level agreement (SLA) to avoid less than pleasant surprises.
Leasing IT equipment whether with an IT equipment supplier or by cloud financing, will always be profitable for the company if it sets the right terms with its lessor. Cost savings and performance are the keys to an efficient IT financing solution.
Another way to save money surrounding your IT assets is by using a platform like Cimpl. This solution will save your business money in telecommunications and IT, while managing all of your assets in an accurate inventory. Cimpl is an all-in-one telecom expense management software that allows you to connect all of your information, clarify your data and control all of your business assets, as well as usage and costs very easily. IT Cost Management in Canada is that simple.
For more information visit our website or click below!