8 reason why a UPS lease agreement could be the answer
For many organisations, an uninterruptible power supply (UPS) forms an imperative foundation for their critical infrastructure. Providing a backup source of power if the mains were to fail. For some it may be an added level of continuity, supporting IT equipment, special applications or server racks but for others, it’s a compulsory asset necessary to comply with strict industry regulations or to protect sensitive data.
But as businesses across the country have faced some of the most turbulent times for generations, having been precipitously hurled in and out of lockdowns, so many are being frugal with capital expenditure (CAPEX). And rightly so.
Purchasing a new UPS installation, while necessary, calls for a large CAPEX. Power Control Ltd has seen an uptick in the number of businesses requesting UPS financing or UPS leasing options. A UPS lease enables businesses to ensure full power protection without tying up cash reserves that are better spent in other business operations.
There are numerous benefits to financing or leasing equipment, particularly for small and medium size businesses. Those looking for a backup power solution that can be upgraded, extended and updated as the company evolves and grows can do so very simply with a lease agreement in place.
The Benefits
- Conserves working capital for other purposes – For businesses with budgetary restrictions preventing capital outlay, the small upfront costs and regular monthly payments make high-value purchases such as a UPS more attainable. It also allows businesses to free up cash for other uses. A feature that is especially important through turbulent times.
- Preserves existing lines of credit and access other lines of credit– One of the often forgotten about but important reasons to finance equipment is access to other lines of credit. Similarly to tax efficiency, the predictable monthly expense of an equipment finance agreement means a business can access another type of business finance alongside it. This is a major benefit as companies can obtain the necessary equipment without affecting other lines of credit whilst also making future borrowing easier.
- Simplifies your budgeting through regular fixed payments– Financing a UPS with a UPS lease agreement means repayment amounts will be fixed throughout the agreed lease period. This avoids the effects of inflation and in turn, makes forecasting and budgeting simpler.
- Provides controllable, convenient and tax efficient funding – By definition, tax relief is the amount of money that the corporation tax bill can be reduced by. Lease payments on UPS systems can be deducted as a business expense on a tax return, reducing the net cost of the lease. The type and length of the lease will affect the amount of tax relieve received.
- Helps to insulate your business from the problems of depreciation and rapidly obsolete technology– As with a majority of tangible assets, UPS systems have a shelf life and will depreciate over the years. Technology is also rapidly evolving, and UPS systems are more efficient now than ever before. Leasing options mean businesses can access upgraded technology and are not left with obsolete units at the end of the agreement.
- Get the equipment you need when you need it– Financing and leasing agreements break down budgetary retractions. Where buying a UPS outright required large CAPEX, purchasing a solution under a lease agreement allows a business to acquire equipment that is out. of reach as a one-off payment.
- Flexibility – As business operations expand so does the need for additional or upgraded power capacity. As part of a UPS lease, a business can acquire additional systems quickly without a large outlay.
- Why settle for second best? – Financing options allow businesses to access better quality equipment, without having to settle for outdated technology or a UPS that is incorrectly sized to save upfront costs. While this may reduce CAPEX, it puts the business under.
Securing a UPS System Lease
Once a business has been marked as eligible for a UPS finance lease agreement, a UPS system can be onsite in a matter of days. Preventing businesses from having to wait weeks or months to purchase, replace or repair the critical equipment. UPS systems form a key part of a critical infrastructure and every day without one is an unnecessary risk to business continuity
Contact us
Financing or leasing a UPS offers a very cost effective, flexible solution to ensuring a business remains operational in the event of a power failure. For more information about UPS leasing options from Power Control please complete the form below, email info@powercontrol.co.uk or call the office directly to speak to one of our UPS finance team on 01246 431 431.