Jason Hines, founder and CEO of DBSI, discusses leasing vs buying technology equipment with Dell's Tech Page One:
Small business’s IT challenge: buy or lease?
March 24, 2014 - By Ritika Puri - Tech Page One
The pros and cons of both, plus a third option: lease to buy
In the short term, at least, businesses can save money and remain cash-flow positive by leasing technology equipment. But if the current technology fits your long-term needs — and you want more control over your IT system — buying might be the better choice. And then there’s a third option: leasing to buy.
“If you have very little working capital and cash flow is unpredictable…then almost certainly leasing is the way to go,” says Jason Hines, founder and CEO at DBSI, a company that specializes in telecommunications sales and installations.
Leasing does have several advantages. For one thing, it can help business owners stay flexible in changing business environments.
“Having lines of credit and working capital tied up could be the difference between staying afloat or not,” explains Hines.
Planning technology needs
But over the long run, leasing can be more expensive. Small businesses need to figure out whether leasing equipment is worth the added expense.
“Companies that are looking for a long-term investment and have the financial capital to spend on technology will benefit from buying outright,” says Hines.
