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Having security equipment for your business is absolutely vital, but investing in good security equipment can be expensive. Luckily, there is a cost effective way to provide your place of business with state of the art security: leasing. Choosing to lease your security equipment gives you access to security measures while helping to conserve cash flow.
Leasing Versus Buying
In making the decision between leasing and buying security equipment, you need to consider all of the factors that come with each option. Leasing will be cheaper up front, since it is a smaller initial payment for the equipment and installation, but you will most likely end up paying more in the long run than you would if you purchased the equipment outright. Which isn't necessarily a bad or detrimental aspect of the process, as this can allow you to opt for a higher end system without having to pay the total cost up front. It might not seem like it's ever worth it to pay more with monthly payments, but sometimes it's the best way to get the best equipment.
Also, think about the continuous costs associated with operating security equipment. For the most part, all security equipment comes with a warranty or grace period during which you can have items repaired or serviced. When you own the equipment, the end of the warranty signals the beginning of maintenance and repair costs coming out of your bank account. If you lease, though, the agreement should assign responsibility for repairs, maintenance, and replacement to the vendor or manufacturer.
Trying to figure out whether it is better to buy or lease your security equipment can be difficult, but just remember to consider everything that comes along with each option. When you weigh it out, you will know which option best benefits your business.
Benefits of Leasing Security Equipment
Leasing your security equipment comes with many benefits. From a monetary perspective, it allows you to save money up front and throughout the life of your equipment by cutting down on maintenance costs. It also reduces your taxable income, which is a perk for any business. Leasing also allows for more flexibility than outright purchase does.
Since leasing is a temporary agreement, you are not permanently tied to any piece or set of equipment that isn't working out for you. You can change or upgrade to a new setup whenever your lease ends or, if there are provisions set for this in the rental agreement, upgrade to new equipment under your current lease.
When it comes to security equipment, perhaps one of the greatest things about leasing is that it allows you to have the most advanced, up-to-date equipment available. Technology advances at a rapid pace, and security equipment is no different. Being able to consistently upgrade or stay on top of the latest and greatest is incredibly important for the security of your business. Leasing your equipment gives you the ability to achieve this in a way that purchasing outright does not.
The Cost of Leasing Security Equipment
As with anything, the financing rates for leasing security equipment depend on your credit score, location of your business, and the size of the lease. Less expensive equipment generally has a higher financing rate, while more expensive equipment has a lower financing rate.
In general, expect monthly lease payments to average between 8 and 20 percent of the purchase price of the item.
- A CCTV Security Pros 32 camera security camera system runs around $8,000. Leasing costs for 24 months would be $142.02 a month at 8% and $157.80 a month at 20%.
- A Stanley Complete Access Control security system with electronic locks, biometric technology, and full network capabilities, is priced around $10,000. For 24 months, the monthly costs would be about $189.74 at 8% and $210.82 at 20%.
Keep in mind that these prices are a general guideline, as each rental situation is unique. Your credit score factors greatly into the final cost of leasing security equipment. Also note that leasing security equipment may come with the additional cost of monitoring services, which can range between $50 and $250 a month.Additional Considerations When Leasing Security Equipment
There are two questions you should ask yourself whenever you are contemplating leasing anything: How long will I use it? What will I do with it when the lease is over? The amount of time you intend to use your security equipment is important and can be what makes or breaks your decision to lease. The same goes for what you will do with it when the lease ends. If you want to return or upgrade your equipment after a period, then leasing is probably the best bet for you. If you would like to renew it, then you might be better off purchasing it outright (unless you are leasing purely to get the equipment you want without paying the full amount right away). Always make sure to consider all the factors and what will truly work best for you before making any final decisions.