3 Benefits of Using a Software Leasing Company
1. You Will Stay Current
If you purchase your software upfront, you’ll have to discard it and buy a new version every few years or pay the software company extra to access the updates. However, this isn’t a problem when you use software leasing companies. At the end of your term, you can give back the old software and select an updated program that fits your company’s current needs.
2. You Can Keep Your Capital
Most companies need various kinds of technology solutions, including business management software, accounting software, industry-specific programs, and customer management software. Often, these programs cost thousands of dollars. In fact, the average business spends over 8% of its revenue on IT solutions every year.
When you choose to lease, you can spread out these costs so you don’t have to raise so much money upfront. This can be especially helpful for businesses that are just starting out and don’t have a lot of customers yet. It’s also a great option for companies that are looking to expand their operations and want to reinvest their profits into the business instead of spending them on software and equipment.
3. You Lock in the Price of Software
By leasing, you avoid having to plan for the unexpected. You will know months or years in advance how much your software will cost, no matter what the wider economic conditions are. This makes budgeting much less complex and allows you to focus on your product or service instead of worrying about fluctuating expenses.
Most small and medium-sized businesses lease at least some of their equipment. Almost anything can be leased, including software. If you’d like to stay up to date without spending thousands every few years, you need your capital to grow your business, or you’d like to guard against inflation, leasing is the perfect option. To get started, you should speak to an equipment leasing company to find out whether you are a good candidate.