Finance, lease or rent – there are different options.

What are the pros and cons? Which option to chose?

Buying the classic way by paying the total amount is without question the cheapest option. However, it doesn’t always have to make sense to look only at the lowest price during office planning. Conserving liquidity is a very good reason to consider alternatives.

Which alternatives are available if liquidity is to be conserved?

Do without? Scale down? Buy on installments? Lease? Rent? Let’s look at what makes sense and when.

A widespread saying states that “Fine feathers make fine birds”. The same applies to the equipment in your company. It sounds logical to simply forgo the new office furniture or purchase very cheap office furniture. But it can also be very counterproductive. Are you receiving customers? Do you need a practice facility? A law firm facility? Salesrooms? Never forget the external impact! Investing in your own image is absolutely worthwhile. The first impression counts and cannot be easily revoked.

A similar question can arise in relation to recruiting and retaining employees. The more tense
the situation is, the more important the design of the workplace becomes. An ergonomic workplace is always a worthwhile investment in employee health.

Buy on installments? Lease? Rent?

Own or use? – An important criterion!

With financing, ownership of the item passes to the buyer. He owns all rights and freedoms to his property. Leasing and renting, on the other hand, simply means acquiring the right to use an item, but complying with obligations in dealing with the property of others.

At the end of the lease period, you are free to pay for ownership, return the item, or lease the latest version. This option is very useful in all areas with high technological progress. In this way, you can always stay up to date without making major investments. For office furniture, however, this aspect is rather irrelevant.

The option to rent office furniture is not very widespread. Where it is offered, it is more about furnishing apartments. These offers are suitable, for example, for expats who are only staying for a certain period of time or who are leaving the family at home. For a company event, furniture can also be rented from a trade fair outfitter.

Definitions

What is leasing?

“Those who lease rent an asset in the medium to long term, but do not buy it. The lessee can use the leased object like an owner and often has a purchase option at the end of the basic rental period. As a rule, the leased object remains the legal and economic property of the lessor.”

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What is the difference between leasing and renting?

“The difference between leasing and renting is that the user of the leased object has all the rights, risks and obligations that the landlord usually bears in traditional renting. In contrast to a rental contract, the lessee is liable for damage and for the failure of the product.”

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How high are the costs? And are there any hidden costs?

Both credit and leasing installments are subject to interest. Lease payments are usually higher than the loan payments of a financial purchase. Rental prices are even higher, since the landlord usually bears all the risks and after the end of the rental contract has to take care of the refurbishment or disposal of the furniture used.

Whether there are hidden costs depends on the contract design. Leasing or Renting
it must be clearly regulated what wear and tear the furniture may show at the end of the period of use . Otherwise unexpected extra costs can come to you here.

Sustainability

Sustainability may be a (still) unusual aspect of this question. But it’s an interesting question that’s getting asked more and more often. The materials and quality of your office furniture determine the possible service life and thus an important aspect of sustainability. Modular furniture concepts also enable you to adapt your furnishings to ever-changing conditions or to replace individual parts. This protects the budget and resources.

Conclusion

If office furniture is only needed for a short period of time, renting can actually be the most efficient option, despite the higher monthly costs. A pop-up or a special company event can be easily implemented. Without high acquisition costs, without resale costs.

Since office furniture such as desks are not subject to rapid technological change, they are not a typical leasing item, but can round out a lessor’s portfolio to provide one-stop shopping.

Companies are founded to stay. High-quality office furniture can be used for many years and decades. It is therefore worthwhile to acquire ownership of it and be able to decide freely about it. In order to protect liquidity, the finance purchase with plannable installments and clear periods of time is the clever alternative to direct purchase.