A back-up power solution is beneficial to any modern business. You just need to decide on whether leasing or buying the back-up solution is the right choice for your business.
Leasing a Back-up Power Solution
There is a big move towards leasing equipment long-term, and back-up power solutions are no different. Here are some of the reasons why businesses of all sizes are turning towards a lease agreement rather than investment.
1. Financing options
When leasing a back-up power solution, you aren’t having to put up a large amount of capital, rather the supplier will provide you with financing options to suit your budget. In addition, suppliers will offer equipment maintenance and servicing included in the monthly costs which makes budgeting much easier.
2. Flexibility and choice
Selecting a back-up power solution for your business is a big decision, and it’s often difficult to gauge exactly what type of equipment you’ll need – particularly for future changes. With the option of leasing, you’re able to get a feel for the equipment and decide, when the lease is up, whether you’d like to upgrade your back-up power solution or change it for a different type of back-up power system.
3. Easy upgrades
So often, investing in an expensive piece of equipment is all about time, as newer, more efficient models might be launched just after you’ve purchased one. When leasing a back-up power solution, you are able to upgrade to new equipment without the associated costs, ensuring you’re always using the most up-to-date models.
It’s difficult to determine what the future holds for any business, which also makes investing in equipment quite risky. With the option of leasing a back-up power solution, you are able to scale up or down, depending on your business’ changing needs.
5. Keep up with competitors
The leasing option allows you to have the latest back-up power solutions, keeping you up-and-running no matter what. This means you won’t be left behind during power outages or because of unforeseen cuts, better positioning you to compete with top industry players.
Buying a Back-up Power Solution
Now to take a look at some of the benefits you’ll get when you invest in a back-up power solution rather than leasing.
1. It’s more cost-effective long-term
Ultimately leasing is more expensive than paying for the back-up power solution upfront, so if you have the advantage of strong cash flow, then this would be a cheaper option.
2. Flexibility in services
When it comes to things like maintenance and services for your back-up power solution, you can shop around to find a company that you prefer, rather than having to rely on the agreed supplier.
3. No long-term contract
Buying a back-up power solution means you aren’t locked into a contract. While there are many reputable suppliers out there, you could end up with unfavourable terms if you don’t negotiate your lease agreement, or if you don’t partner with an experienced supplier.
4. Valuable A sset
Your purchased back-up power solution is a business asset and, therefore, adds value to your company’s Balance sheet.
5. Payment obligations
You might find, a few months down the line, that you don’t have as much need for the back-up power solution as anticipated. If you’ve bought one, you can re-sell it. However, if you’re leasing, you have to pay the monthly costs for the duration of the lease agreement.
Make sure you’re dealing with a reputable provider when deciding on leasing vs buying a back-up power solution for your business. There is undoubtedly a solution that will meet your particular business requirements, you just have to ask around!
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