Advantages of Renting  
     
 
  • Capital Conservation:
    IT equipment ( Laptops, servers, desktops etc )can be obtained on Rent at Fraction of the Actual cost. (Around 8%). Instead the Capital can be used in other important Operational needs like Marketing, Research, Salaries etc.


  • Tax Relief:
    Entire amount paid as rentals can be written OFF as revenue Expenditure. Thereby saving on Capital Expenditure.

  • Renting makes Equity to Debt Ratio Looks Better:
    Renting Does not impact your Financial Statements, so your Borrowings potential (Through Bank Finance) is not reduced, as it would be iif you borrowed to make a purchase. Also Rent payments are considered "Pre tax" rather than "after Tax". Hence One can write off payments for tax purposes, whereas borrowing can write off the interest paid. (Kindly consult your FInancial advisor for further clarifications).

  • Savings on Repairs and Maintenance:
    It is the responsibility of the supplier to maintain and repair the IT equipments procured. Also One can demand a replacement for repeated fault.

  • Cushion against Price Drops:
    In fast chaging IT technology One can avail the option of upgrading to latest technology periodcally without any quantum investment. If owned than IT equipment ( Laptops, servers, desktops etc )depreciate to extent that is economically not feasible for upgradation. Hence the Flexibility at hand to choose latest technology.

Renting can be a good option for the following user's and in following scenarios. makes a good economic sense to rent( Laptops, desktops, servers) without making high Capital expenditure.

  • Start up Ventures.
  • Testing and Debugging of Software Projects.
  • Promotional Events, Exhibitions, Presentations etc.
  • To meet the temporary demand due to sudden upsurge in Workloads.
  • Short term Data entry Projects.
  • Areas where CAPEX appoval takes long time where Renting can be arranged on short notice.

 

 

 
     
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