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How To Get Equipment For Your Office Or Work Environment
Ellen Davidson
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Many small businesses just getting started or looking to upgrade their technology often have little choice in getting equipment for the office. In many cases they will max out their credit cards or take out a high-interest loan in order to meet the computing needs of their new or growing company.
The biggest obstacle they face may be in the amount of up-front cash they need to bring the equipment into their work environment. They may also look down the road with anticipation of their business continuing to grow and wonder how they will pay for additional upgrades. In some cases, leasing the office equipment may be an option with either a capital lease or what is often termed a fair market value lease.
Either scenario allows a qualified business to own the necessary equipment to use in their daily operations without a huge outlay of cash in the beginning. With monthly payments determined by the amount of equipment being leased as well as the length of the lease contract, the company can maintain a positive cash flow from the start. For example, a equipment lease from Hewlett-Packard only expects the first months payment at the time of the order with the next payment due 30 days after the equipment is received.
Regardless of how much equipment is being leased, this initial cost will be much lower than the total purchase price. Under a fair market value lease, the Hewlett-Packard, for instance, maintains ownership of the leased equipment for income tax purposes. The business can deduct the monthly payments as part of their business expenses and at the end of the lease term the business will be charged the fair market value of the equipment. They also have the option of returning the equipment to HP and exchanging it for upgraded equipment.
Under a capital lease, the small business is considered the owner of the equipment for income tax purposes and at the end of the lease, they can buy the equipment, typically for one dollar. This type of lease is more beneficial to those who plan to own the equipment at the end of the contract. Those more interested in continual equipment upgrades may be better off with a fair market value lease contract.
One of the advantages of leasing all of the business equipment from one supplier is having only one contract to deal with as well as having only one payment to make for everything. Additionally, with the equipment coming from one supplier it is guaranteed to all work in tandem. Service issues can be a problem with different equipment coming from different sources as each piece of equipment may be serviced by a different company. With all equipment from one place, one service call takes care of everything.
| © Copyright 2008 http://www.hpacademicpurchaseprogram.com/. All rights reserved. Distribution or reproduction is strictly prohibited without written permission.
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| How To Get Equipment For Your Office Or Work Environment |
| Many small businesses just getting started or looking to upgrade their technology often have little choice in getting equipment for the office. In many cases they will max out their credit cards or take out a high-interest loan in order to meet the computing needs of their new or growing company. more |
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