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Question: Like many law firms, we have been buying IT equipment for years and are considering changing our approach. What are the advantages of leasing?
Answer by Scott McFetters (Guest blogger)
As the pace of technological innovation accelerates, the useful lifespan of your equipment decreases inversely. In this environment, leasing may be a more financially strategic choice rather than buying. Remember, law firms and other organizations get ROI on their equipment by using it, not from merely owning it.
Leasing allows your firm to procure the technology needed to stay competitive within a predictable, budget-friendly monthly expense by converting a potentially large cash expenditure into an expense that is spread out over time. Leasing makes it more viable to:
- Pay only for the useful life of your technology and equipment as the pace of change continues to rapidly increase
- Keep cash on reserve and convert your infrastructure requirements to a simplified monthly expense
- Use the most up-to-date versions of software and hardware
Updates are built into leasing plans. Your firm can receive the latest security and software updates according to its needs and clients’ demands without having to wait or tap into its cash reserves. The “soft costs” of training, installation, and maintenance can also be a part of your lease structure, increasing your chances of success for each system upgrade or implementation.
Another significant advantage to leasing is that maintaining a flexible technology procurement process, with quick decision cycles and a built-in mechanism for upgrades, frees up attorneys and staff to concentrate on high-value work.
I recommend that your firm consider these advantages as you work on your IT strategy for the next several years.
About Scott McFetters
Scott McFetters is President of CoreTech Leasing, Inc. CoreTech is an independent leasing company working in strategic partnership with over 100 of the nation’s most distinguished law firms. For more information, please visit www.coretechleasing.com, follow us on Twitter @CoreTechLeasing, and join us on LinkedIn.
Kraft Kennedy is vendor agnostic and works with a number of leasing suppliers according to the needs of our clients. Contact us to talk about your procurement needs. Submit your questions to firstname.lastname@example.org or post them in the comments below.