© 2011 Hewlett-Packard Development Company, L.P
Why are there so many negative connotations surrounding the idea behind hoarding? Hoarding your company's cash is a positive.
Given the current economic climate, it is vital for small and medium-sized businesses (SMBs) to have a little wiggle room. At the same time, many companies need to maintain maximum output. Unfortunately, the purchase of IT equipment usually requires a significant capital expense, which isn't always available. So how can SMBs overcome this obstacle?
Fortunately, there is a viable alternative to purchasing IT equipment—leasing. Leasing is much more common than many people consider. Nearly 100% of American businesses lease at least one piece of equipment. [1]
1. Leasing business equipment enables organizations to acquire assets with minimal capital investment. Take the example of a company that wants to purchase workstations for multiple employees. This can be a prohibitively expensive exercise. Leasing programs such as HP's Smart Buys offer allows companies to lease desktops for as little as $16.00 a month.
2. Leasing allows companies to scale up their business operations as their profits increase. Programs like HP Financial Services Pay as you grow helps companies purchase IT products at a pace and price you can reasonably afford. These kinds of programs are perfect for SMBs because it gives them the flexibility to respond to fluctuating commercial circumstances—they can upgrade to the latest technology at a pace that works them. For example, a company may gain or lose a major customer and be forced to change their IT infrastructure as a result. [2]
3. Having this capacity is useful to many up-and-coming organizations because it allows them to avoid the problem of obsolescence. The simple fact of the matter is that technology becomes obsolete quickly.
Both programs allow companies to retire obsolete equipment and upgrade to the latest technology. To give an example, an SMB might want to upgrade to the HP Officejet Pro 8500A Premium e-All-in-One Printer to exploit its ePrint functionality. This can be done perfectly easily.
So, why does it matter? It is absolutely critical for SMBs to be on the cutting edge of industry. For example, a freelance graphic designer who does not have access to the latest print equipment will be at a major competitive disadvantage to one that does. Or, if a company purchases expensive equipment outright it may be virtually impossible to sell it several years down the line.
4. Leasing allows companies to innovate and grow their cash reserves simultaneously—a sensible option in today's uncertain economic climate. It also allows them to accurately predict their cash flow because they don't have to worry about the variable costs associated with purchasing equipment.
© 2011 Hewlett-Packard Development Company, L.P