Posted on: 23 May 2015
If you are opening a new office, you may be in need of commercial office furniture. This can quickly turn into a large expense that you might not be prepared for, especially if you are a new business. Leasing is another option you have which requires monthly payments instead of paying the full cost in the beginning. Here are some pros and cons of leasing office furniture so you can decide if this is the right option for you.
Pro: You can furnish your office quickly
One of the best benefits of leasing office furniture is that you can get your office furnished without delay and with as little upfront costs as possible. This can allow you to get to business right away without waiting for credit approval to purchase new furniture, or waiting to find furniture you can afford. Most furniture leasing companies also deliver the furniture and set it up for you, adding to the overall convenience.
Con: Buyout prices might end up costing you more
When you are nearing the end of your leasing agreement, you may decide that you like the furniture you chose and want to purchase it from the leasing company. While you have had the convenience of paying for the furniture on a monthly basis, the buyout price might not seem entirely worth it. The final cost of the furniture, between the deposit, monthly payments and buyout cost, can be much higher than if you purchased it from the very beginning.
Pro: Leasing prevents you from tying up your credit line
As a new business, using your credit line for anything that isn't absolutely essential might not be the best idea. You should save your company credit line for purchases on things like office supplies and inventory, which you can't get any other way. By leasing the office furniture, you have enough credit left for the rest of what you need for your new office, while also getting high-quality furniture.
Con: You may be liable for damage to the furniture
Make sure you read the terms and conditions very carefully before you agree to leasing furniture, since you might be liable for damage to the furniture. If you lease office furniture for a year and decide to return the furniture at the end of the lease, the condition of the furniture may cost you. If there are rips, stains, and normal wear and tear, you may end up being charged high penalties. Be sure you are aware of what penalties could be associated with leasing the furniture.
Pro: You can upgrade or trade the furniture
Another great benefit of leasing office furniture is that you might be able to upgrade to higher-quality models or change the overall look of your office by trading it in for other types of furniture. When you are looking into commercial office furniture leasing companies, ask about possibly upgrading and how often you can switch it out for other styles.Share