If your potential customers are on the fence about purchasing your hardware or technology – wary of the upfront expense or the commitment of the purchase – the option of leasing the equipment might be the deciding factor that can turn a non-buyer into a satisfied customer.
Here’s how a leasing program with a financial partner can benefit your customers:
They can get it right now. When time is of the essence for your customers’ productivity, waiting for the funds to be available isn’t always an option. With a lease, they won’t have to put out a hefty upfront payment and won’t have to worry about immediately having the cash on hand.
They won’t have to worry about disposing of it later. When the IT assets are no longer needed, your customers will have to dispose of them – a process that may be more complicated and costly that many realize. IT components must be properly recycled according to local and federal environmental regulations. With a lease, they won’t have to worry about it.
They’ll reap some serious tax benefits. The entire lease payment, unlike a loan payment, can be deducted as an operating expense in the period in which it’s paid, hence reducing the overall cost of the lease. On top of this, payments are treated as expenses on the income sheet. So, there’s no need to worry about depreciation.
They’ll keep their cash reserves free. Paying for the equipment over time with a lease agreement means that there is no huge cash burden for your customer. They’ll be able to keep their cash reserves clear forother expenses or emergencies.
They won’t be afraid of obsolescence. Many businesses fear the ever-changing nature of technology. They’re worried that they’ll get stuck with something that becomes out of date the second they buy it. With the option of a technology lease, they’ll be able to hand their purchase back when the lease is up and move on to your more up-to-date version.
As always, if you’re considering a leasing program be sure to check out Direct Capital’s excellent vendor financing programs.
Do you offer your customers a lease option?