Why Rental?

  • You don’t pay the entire cost of the asset in advance, so you get to save money that way and don’t have to think about borrowing money either
  • Every time you rent a particular IT product, you have the option to go for a better or an advanced version of what you may have rented previously. Again, there is no question of buying
  • You get to pay in installments for the asset over a fixed period of time of your consumption of the product/service. This helps you in planning your budget for the future
  • Interest rates on monthly rental costs are usually constant, and hardly change, so you can easily forecast cash flow for your business
  • You can spread the cost over an extended period of time that you use it and match it to income
  • Your business can deduct the entire cost of leasing the product from taxable income
  • Using operating lease or contract hire will avoid unnecessary worries about maintenance
  • For long term leases that go on for more than five years or even more than seven years, you can actually claim capital allowances on the entire cost of the assets
  • If you want to upgrade or replace your equipment, you can just make some minor adjustments to your regular payments rather than having to invest a lump sum in advance