Helping businesses finance technology and telecommunications 

This is a decision which usually depends on the expected useful life of the equipment. As a rule of thumb, if equipment has a useful life of less than 10 years, leasing is often a better option than buying outright. Leasing breaks down large upfront costs into smaller regular payments, which keeps technology, telephones and printers affordable.

If the equipment you need has a relatively short life cycle, and is likely to be either redundant or need replacing in less than 10 years, it is often not worth burning your cash on an asset which is depreciating and may need upgrading regularly. Instead, save your capital to grow your business.

Leases can be structured in very different ways -  some leases are structured so that you own the equipment outright at the end of the lease term. Others are in essence a rental contract, where you return and/or upgrade equipment at the end. Some leases include maintenance of equipment, whereas others don’t. The structure which suits you will depend on the type of equipment you use. 

Eclipx Commercial can help you work through your options.

Because technology changes rapidly, owning doesn’t necessarily make sense. The initial outlay could be more than you can afford, and in a few years you may find yourself with an old computer you need sell (if you can) before you upgrade.

Eclipx Commercial can structure a lease with a residual value which stays on our balance sheet not yours. This means monthly payments are kept at a minimum, and you can return the equipment to us at the end of the lease. At this point you can choose to upgrade or walk away.

Ideally the length of the lease should match the expected useful life of the equipment. Computers are typically upgraded every 3-4 years, whereas a phone system could last longer, and your lease should be structured accordingly.

Some equipment requires regular maintenance, and if so, you should consider a lease which includes maintenance as part of your regular payments.

If the answer is yes, or you are not entirely sure, your finance arrangements should allow for end of lease flexibility. Eclipx Commercial’s finance programs from technology and other communication equipment will all you to decide what you do with the equipment at the end of the term – keep it or upgrade it.

Information and communications technology is constantly improving, and up-to-date equipment is essential for any business to succeed. At the same time, buying ICT equipment outright is expensive, particularly if you believe it will need to be upgraded in a relatively short period of time.

That’s why it’s important to partner with an asset finance provider which understands your business, and the technology, and can help you structure a lease which suits your needs and your cash flow.

Eclipx Commercial has helped many small and medium sized businesses source, finance and upgrade the equipment they need.