Leasing systems is a popular option with many IT groups, but it requires careful planning,
evaluation, and management. Here are 10 things to keep in mind if you're
thinking about endorsing a lease program.
1. Get finance involved
It may seem out of place, but having finance involved with the business side of leasing is a good
idea for the following reasons:
-
Payment management
Depending on your leasing arrangement, you can have your lease payment managed so that IT doesn't have to manage the periodic payments directly. Also, if there's IT staff turnover, this would be managed directly with finance to reduce risk of a penalty from no payment. -
Business terms and conditions (T&Cs) sanctioned
T&Cs are a nightmare to manage, much less control. By having your finance group involved, there is certain legitimacy to the lease program you have selected -- or there may be a formal approval process. -
Direct asset management
This is more important for outright purchases, but if your organisation tracks assets, the leased systems may need to be accounted for in some fashion. Having your finance or accounting group directly involved with the process can streamline this process and allow the information to be obtained directly.
2. Consider using traditional financing for the SOHO
Many SOHOs (Small Office, Home Office) have small technology staffs and even smaller budgets. Depending on the circumstances, leasing may be too complex for the small office, and there may
not be a hard rule of "3 years and out" for office technology purchases.
When traditional financing is used, it can be done on a per-system and per-need basis. The payments are usually manageable when only a few financing accounts are active at any given time. These traditional financing vehicles can be any of the following:
-
OEM financing
Take Dell, for example. You can purchase select new systems and finance directly through Dell for a monthly price. -
Retailer financing
Many retailers have financing options that allow you to directly finance the purchase price. This may be a good option if you're purchasing more than just a computer (special printer, furniture, etc.). -
Company credit card
Many business credit programs exist, as well as many bank-dependent programs with VISA and MasterCard brands.
Best practices
When using traditional financing for computer purchases,
consider having the periodic payment come out of a departmental budget for the
individual technology need(s). For smaller organisations, it is very difficult
to justify an IT budget, much less have the budget be consistent and
predictable. A popular option for very small organisations is for employees to
finance these types of systems on their own and reimburse the costs directly. This
is a hassle and poses risks to the individuals, but in some situations is the
best solution.
3. Have a firm end-of-life policy for leased equipment
The buyouts are usually not effective in giving you the best overall value for the technology
solution, and you shouldn't plan on month-to-month options when leasing systems.
Have a strong policy that allows you to pull the equipment back to IT for a
data offload process and a migration (if necessary) to prepare for the return.
Be sure to not miss any of the common issues with the end of a lease:
-
Have a means of returning the equipment
Original boxes may not be required, but a way to return the equipment is necessary in a lease return. -
Don't lose the little things
Notebook power supplies, supplemental batteries, cables, external drives, or any other accessory or peripheral that was part of the lease will cost you if not returned at the end of a lease. -
Have the systems physically cleaned
Don't have the systems returned with stickers or asset tags on the devices. There may be charges for systems with these types of markings. -
Migrate data OFF of systems
This probably goes without saying, but we'll discuss it in more detail later.
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