When you decide to renew your company's technology, your first option is certainly to buy the equipment you need. However, resorting to Technological Leasing offers you other advantages that you probably haven't considered yet, such as better economic, productive and even fiscal results.
There are several reasons why you may find that you need to revamp your company's technology. Outdated technology, slower computers, hiring new employees, opening a new office, among many others. Whatever the reason, the moment you decide to acquire new technology you will have two options at your disposal: purchasing or renting the equipment.
Perhaps the first option that comes to mind is to purchase the equipment you need, since you retain ownership of the assets. But have you ever thought that you can also resort to long-term rental or Technological Renting and enjoy benefits much greater than owning the equipment?
In this article you will be able to consult the various tax advantages of Technological Renting, however this service presents many more benefits for your company, from better cash management, greater employee productivity and even lower energy costs.
To help you make the best decisions, we have prepared this document in which we address the differences between renting and purchasing technology.
Technology rental VS technology purchase
Greater purchasing power and cost control VS Available capital allocated for purchase:
Through Renting, your company can use the equipment it needs by paying monthly rents. This way, you will have greater control over the costs allocated to technology, and you will still have capital available to allocate to other areas. If you decide to purchase the equipment, the capital required may be much higher and exclusive for the purpose of acquiring this equipment, leaving less room for investment in other areas.
Predictable payment streams, better cash flow and liquidity VS Less effective cash management:
By opting for Technological Renting, you can count on fixed and periodic income throughout the entire period of the contract, which allows you to predict the expenses that you will have to cover, providing better cash flow and liquidity. By purchasing technology, you may be spending capital needed to invest in other areas of the company or to meet unexpected expenses, which makes cash management difficult without forecasting expenses.
More capital to invest in other areas VS Limits the company's potential growth:
Through Rental, you will have access to reduced monthly payments to use the equipment, so you will have more capital left to invest in essential areas for the growth of the business, such as employee training or communication and promotion of your company. When purchasing technology, a significant amount of capital must be invested in this action, which eventually limits the company's development in other areas.
Suitable for any budget VS Limited to small budgets:
Because it involves less capital investment, the Rental service is suitable for any budget, as you can extend the contract for as long as you prefer (12 to 60 months), depending on the type of equipment, which reduces the monthly cost. On the contrary, when purchasing technology you will have to adapt the investment to the available budget or use credit, and the latter option may not be the ideal scenario.
Replacement equipment in case of failure VS Work interruption in case of equipment failure:
When the misfortune happens that one of the equipment breaks down, if you have opted for the Aplic Rental service, an identical or similar replacement equipment will be delivered to be used during the repair period. On the other hand, if you purchased the equipment, you may have to buy new equipment to replace the broken one or have it repaired, which may mean that the employee using the equipment is out of work during that period.
Ease of periodic upgrades VS Requires more available capital for a new upgrade:
By having the option, at the end of the rental contract, to return the old equipment and renew the contract for new equipment, you have the possibility of choosing newer and more sophisticated models which allows your company to stay up to date with the latest technology. If you acquired the equipment through purchase and need to upgrade to more advanced alternatives, you will need to have more capital available if you intend to buy again to replace the equipment, or it may be a good opportunity to join the Renting.
100% deductible cost of IRC and VAT VS Only 25% of expenses can be deducted in the year of purchase:
From a tax point of view, Renting has the same treatment as that applied to the operational leasing of goods, which means that it reduces your company's tax burden with full tax acceptance in the IRPJ (Corporate Income Tax) of the rents paid as expenses for the assessment period; and, when possible, the deductibility of VAT paid on income (when this is not possible, it has less impact on the treasury).
aria, since it is distributed over the duration of the contract, included in each of the rents). When purchasing technology, you can only deduct 25% of the amount spent on IRPJ in the year of purchase, with the remainder being distributed over the next 3 years, which impacts the company's annual balance sheet.
Recent equipment to keep up with or outperform the competition VS Equipment quickly becoming obsolete with technological evolution:
As mentioned in point 6, by having the option, at the end of the Leasing contract, to enter into a new contract with new and more recent equipment, you can keep your technology park up to date, which allows your company to keep up with technological developments and grow, thus keeping up with the competition or even surpassing it. With rapid technological evolution, companies that choose to purchase equipment may have to make more frequent investments to keep their technology park up to date.
Environmentally and business friendly VS Old technology consumes more energy:
By choosing recent equipment that is energy efficient, opting for Technology Rental allows you to reduce energy consumption and thus save on your bill. Furthermore, when you renew your technology park with a new Rental contract, your old equipment will be used for other purposes such as in schools or charities, which promotes the circular economy. On the other hand, when you choose to purchase technology, when it becomes outdated and obsolete, you end up no longer being efficient, which causes your company's energy consumption to increase.
Every year, the price of new technologies continues to increase. Companies like Apple and Samsung launch technological innovations, which means that prices follow this evolution. While it may be difficult for the general public to keep up with this evolution, this problem is magnified for companies. It is for this and all the reasons mentioned above that, at Aplic, we believe that Renting is, without a doubt, a viable alternative for companies that wish to remain at the forefront of technology, keeping their cash flow stable.
We will be happy to speak with you to clarify any questions you may have. Our customer managers, experts in Renting, will look for the best simulation, tailored to your company's needs, whether in price or quantity of equipment.
