Renting Office Furniture vs Buying Office Furniture
It is quite a popular topic amongst businesses whether to rent or buy office equipment. The real fact is that small businesses find it hard to raise their capital and hence businesses opt for renting their office equipment with an alternative financial preparation for obtaining the assets. Renting office furniture has become simple and attractive these days – but does undoubtedly have its shortfalls – as does buying as well.
Renting Office Furniture – Pros and Cons
- Lower initial expense
Instead of paying upfront for a bulky amount of office furniture, you are able to allocate a monthly amount suitable to your financial situation.
- Updated looks
By renting office furniture you are able to access leading and cutting edge furniture for use.
- Have a predictable monthly expense
By renting office furniture, you will have a fixed monthly expense in your budget by which you can budget in a more efficient way.
- Higher available cash flow
Renting office furniture is easier than applying for a loan. When applying for the capital equipment loan, banks usually demand for 3 years financial records. This is a tough task for new business starters. Banks do not offer loan for businesses that haven’t been running for 2 years.
Buying Office Furniture – Pros and Cons
- Purchasing is Easier
Purchasing office furniture is quite easy, as one just has to purchase. There are no procedures such as submission of financial information and other aspects when purchasing an office document is done.
When office equipment is purchased, there is no specification in maintaining. You can manage and maintain your own office equipment.
- Selling furniture
When you are the owner of the office furniture, you don’t have to follow any procedure or rules and can sell the items whenever required. Alterations and repair can be made as per the owners wish.
- Avoiding agreements and contracts
When leasing is considered the owner has to abide by all the conditions and rules mentioned in the agreement or contract. When you buy your own office equipment such contracts and agreements can be avoided and the owner does not have to follow any rules or procedures.
- You have full control
When office furniture is purchased, the owner can have complete control of the items and can do anything. There are no limitations or specifications in using the furniture.
These are but only a few aspects around renting and buying office furniture. There are many advantages and disadvantages of renting vs buying, and in the same manner, the new business owners should make sure to research and find out the method that best suits their needs.
h/t for information sourced – https://content.wisestep.com/advantages-leasing-using-buying-office-equipment/