What are the Pros and Cons of Leasing Office Furniture?
When establishing a new office location, the idea of leasing office furniture is usually taken into consideration. In fact, there are several benefits to going with a lease on different types of office furniture. At the same time, there are also a few disadvantages that should be looked at closely before deciding that leasing the furnishings would be the most prudent option.
One major benefit of leasing office furniture is that there is no need to absorb the major expense of purchasing furniture for the new office. This is especially important to small businesses that operate with a relatively low flow of cash and assets on hand. Often, the need to have an established credit rating is not a key factor with companies that provide short-term office furniture lease agreements, which means there is no waiting for credit to be approved. Businesses that are just beginning to operate may find this attribute especially attractive.
Another advantage to leasing office furniture is that business owners can change the look of the office when and as necessary. For example, a business owner may establish a call center with a certain type of workstation. Within a few months, the business has grown and there is a need to add workstations to the office environment. Instead of working around the stations already in place, the leased furniture is simply returned and the owner selects a different design or configuration of workstations that are a better fit for the company’s current circumstances.
Along with the pros of leasing office furniture, there are also some potential drawbacks. Buyout prices on leased furniture can sometimes be cost-prohibitive. This means that if the business owners do eventually determine that the furniture is ideal for the long term, the final tally may be significant. Care must also be taken when leasing office furniture, since some lease and rental firms provide furniture that is not intended to last for more than a few years.
The terms and conditions of the lease agreement should also be scrutinized carefully, as there may be penalties or other charges for damage above normal wear and tear, or special charges that apply if the furniture is returned within a specified period of time after delivery. When leasing office furniture, always take the time to determine the quality of the furnishings, and make sure the terms of the leasing agreement are equitable. Doing so will help minimize the potential for problems later in the relationship with the leasing agent.
I think that anyone who wants to save money on office furniture should look for used items instead of leasing new furnishings. I think that a new business owner will save money by furnishing his or her office this way, and can even resell it when it is time to get new office furniture.
I leased some office furniture once when I was establishing a business, and I ended up losing money. Since there was some wear and tear and a few minor dents and scrapes on it when I returned it, I was charged a significant amount as a penalty.
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