After two long years of grappling with the unprecedented challenges of the COVID-19 pandemic, UK businesses are now experiencing an uptick in the number of employees that are returning to the office.
While in-office hours vary, ranging from a full five days to a few days each week, businesses are now required to update their workplace systems to accommodate a hybrid or in-office workforce.
In this blog, we’ll explore how it’s possible to make these necessary preparations and upgrades through the use of equipment finance.
What is equipment finance?
Equipment finance is a type of financial agreement where businesses enable the technology or equipment they need to support their operation affordably by accessing funds from a financial institution, in exchange for regular manageable payments over an agreed timeframe.
Instead of having to purchase the equipment outright, businesses can lease or finance it, allowing them use of the equipment without the need for a significant upfront investment.
What office equipment can be financed?
The range of office equipment and technology that can be obtained through equipment finance is extensive. This list includes (but is not limited to):
IT equipment, software and telecoms
State-of-the-heart IT equipment is crucial for offices looking to seamlessly navigate hybrid and returning workforces. It makes communication and connection with your team, other businesses and clients possible. However, investing in the IT equipment you need can be costly. Shire Leasing can provide finance for the following:
- Software and licences
- Hosted systems
- Cloud-based VoIP
- Mobile devices and tablets
While you invest in upgrading your equipment and technology it’s also worth improving the comfort of your work space to incentivise your team.
Ensure they have communal spaces where they can socialise and relax during their breaks and provide comfortable seating and kitchen areas where they can prepare healthy food and eat. Some companies even build gyms in their office spaces so that their employees have an opportunity to exercise and boost their well-being while at work.
Examples of equipment and furniture you may want to finance to achieve this are:
- Gym equipment, including treadmills, rowing machines and weights
- Catering equipment, such as ovens, microwaves, fridges, etc.
- Vending machines
- Comfortable seating such as couches, benches, stools and breakfast bars
While technology is high up on the list of considerations, so too are practicalities such as furniture. With employees returning to the workplace, you need to consider whether the quantity of furniture, such as computer desks, chairs, etc. is enough to accommodate your entire team.
If the equipment you need for your workplace is not listed here, get in touch with a member of our team to discuss your specific requirements.
What are the benefits of equipment finance?
Equipment finance offers several key benefits to businesses looking to upgrade their office spaces. Here are the five most significant advantages:
Conserves cash flow
Equipment financing allows businesses to conserve crucial cash flow by spreading out the cost of acquiring equipment over time. Rather than making a large upfront payment, businesses can instead make regular manageable payments that align with their budget.
Access to upgraded technology and equipment
By financing equipment, businesses can acquire the latest equipment and technology they need to maintain a competitive edge in their industry without the burden of upfront costs. It also allows them to upgrade their video conferencing technology to facilitate real-time communication with their own team, as well as during collaboration with other businesses who have hybrid or work-from-home (WFH) workforces.
Equipment financing also offers significant flexibility, enabling businesses to adjust their equipment needs based on their evolving requirements. For example, leasing options provide the flexibility to upgrade or add equipment as needed during the lease term. This prevents situations where businesses are tied down by long-term commitments or owning outdated or obsolete assets.
Preservation of credit lines
One of the key advantages of equipment finance is that it is a separate line of credit, which means that it does not impact a company’s existing credit lines or borrowing capacity. This gives businesses the opportunity to acquire the equipment they need without compromising their existing lines of credit or borrowing power.
As a finance lease rentals can be considered an operational expense, obtaining equipment through finance lease offers businesses potential tax deductions depending on their circumstances.