5 reasons to use leasing for your next IT or software purchase

Johnson Reed
2m read

Technology is an increasingly integral part of any business, whether it be the bespoke software that manages your operation or the intrinsic IT hardware employees use day in, day out.

The initial outlay for the purchase, however, can be incredibly prohibitive to cash flow- and that’s if the funds are even available in the business in the first place!

Here’s how leasing can help:

1.Preserve capital

Instead of parting with a lump sum of capital expenditure to cover the full cost of your purchase, leasing’s regular fixed repayment structure helps your business maintain a healthy cash flow. Instead, your working capital can be put to use in more proactive areas of the business; investing in marketing or new staff, for example.

2.Tomorrow’s technology today

When making a new technology purchase, it can be tempting to settle for substandard equipment to comply with the current budget. Whilst the smaller price tag might look more appealing, investing in the correct kit can reap benefits for your business, saving you money or time elsewhere.

When Elle Media Group invested in new Tharstern software, for example, they managed to increase productivity significantly, contributing to a 40% increase in turnover.

A lease minimises the upfront cost and spreads the remainder of the payments over a fixed-term, so there’s no need to compromise on standard to accommodate the initial cost.

3.Cover the ancillary costs

Acquiring new technology is an exciting time for the business, and it’s easy for the additional costs to fall into the background. A lease agreement can also include installation, training and maintenance on top of the equipment purchase, simplifying the process and enabling tax savings across all elements of the process.

4.Tax savings

Each lease payment is 100% allowable as a tax deductible expense, allowing you to make savings throughout the term that can be offset against the cost of the equipment.  These tax-efficiencies can generate a more immediate return on investment, as was the case when County Print purchased new DAM software through a lease agreement.


Everything is agreed in advance with your lease agreement, so there’s no hidden surprises to crop up at a later date. Your repayments are fixed, regular and agreed on a set schedule, making the process fuss-free and leaving you to focus on running your business. This certainty helps you plan confidently and budget ahead, earning you a big thumbs up from your financial director.

Are you an IT or software vendor looking to offer leasing to your customers? We’d be happy to talk you through the process. Simply get in touch to find out how we can help.