Computer renting for businesses: how it works and when it pays off

What technology renting is

It is a long-term rental: a finance company buys the machine and lets you use it for a monthly fee over a fixed term, usually 36 to 60 months. You use it as if it were yours; the supplier builds it, delivers it and supports it.

Who is involved

• The supplier —us— prepares the proposal, builds and tests the machine and delivers it.
• The finance company reviews the operation, buys the machine and signs the contract with you.
• You pay the fee and use the machine.

What the fee includes

Always, the use of the machine. Depending on the contract, services too: with us you can include Care Pro, with a 4-business-hour response, a fix within 72 business hours and up to 5 hours a month of remote support, for €39 a month per machine.

A worked example

An ACD-009 Advanced Pro workstation costs €18,995 excl. VAT. On a 36-month renting, with an indicative rate of 3.20% of the price per month, the hardware fee comes to about €608 a month; with Care Pro, about €647. The exact fee is set by the finance company when it reviews the operation.

By the end of the term you will have paid more than the outright price: that is the cost of not tying up the money. In exchange, you paid for it while the machine was producing, with support included.

When it pays off and when it doesn’t

• When you would rather keep your cash for payroll, stock or projects.
• When you want to renew machines every few years without having to sell them.
• When you need several machines at once and the up-front investment weighs.
• When you want a fixed cost, with support included.

And when it doesn’t: if you have plenty of cash and plan to use the machine for many years, buying it is usually cheaper.

Renting, leasing or buying

Tax treatment in Spain, in general

In Spain, renting fees are generally a deductible expense for corporate tax or for a self-employed person’s income tax, and the VAT on the fees is deductible according to the machine’s professional use. Your adviser can confirm it for your case.

What happens at the end of the contract

You can swap it for a new machine under a new contract, extend the current one or return the machine.

What you need to apply

The finance company checks the solvency of the company or professional before approving the operation. It usually asks for the company’s and signatory’s details, a bank account for the direct debit and the latest financial documents: annual accounts or corporate tax returns for a company, and income tax returns for a self-employed person. We help you through the process.

Common mistakes when taking out renting

• Choosing a term longer than the machine’s useful life for you. If you will want to replace it in three years, a five-year contract ties you in more than necessary.
• Looking only at the fee. Also compare the total you will pay, what happens if you cancel early and your options at the end.
• Forgetting about support. A machine that is down still costs the fee; that is why it makes sense to include support.
• Under-specifying to save on the fee. The monthly difference between a tight configuration and a comfortable one is usually small compared with the hours lost waiting.