By Anna Stewart
Are you looking to establish a new office for your company? Filling your new office space with furniture is one of the most important aspects of moving into a new workplace environment. From desks and chairs, to filing cabinets and meeting room equipment, there are many different furniture pieces that you need to consider for your business. Now that you have decided how you are going to furnish and equip your office, do you choose to buy or rent your furniture?
There are many businesses who swear that either option is good for your company. But sometimes the answer isn’t too clear to make. Figuring out whether you need to rent or buy your office furniture requires sitting down and thinking through the pros and cons of each. Only when you think things through can you make a reasonable decision about what will be best for your business. If you would like to know more about which option will be best for you, then check out these pros and cons that will help you to make your decision:
Buying Office Furniture
Most businesses usually head towards the direction of buying furniture first. If you are just starting out your business, then sometimes it can be useful to buy your own furniture so that it is 100% yours to own. How much a business owner buys is influenced quite a bit by budget, so let’s talk about the pros and cons.
One of the most important aspects of buying office equipment and furniture is the ownership component. If you buy everything you need you will ultimately own what you purchase. You control how each piece is used, maintained, and eventually disposed of.
Another pro of buying office furniture is that you are not tied down by monthly payments. You’re also not putting money into equipment and furniture that you may not ultimately keep. In short, buying furniture and equipment is a lot like buying a house. You own it and therefore you have the freedom to do with it as you please.
Despite the benefits of buying office furniture, there are some cons as well. First and foremost is the dent it will put in your cash flow. Good quality office furniture and equipment costs money, and you may need that money to put into other aspects of your business.
Another con associated with buying office furniture is the budget. While you may have some money to spend on buying, you may not have a lot. Your desired furniture choices could be limited if your budget will not allow for high-end purchases. That may mean not getting the right style of furniture or equipment that meets your criteria for quality.
Renting Office Furniture
As well as buying office furniture there is also the opting to rent your furniture instead. To furnish your office space you can rent (also known as leasing) your office furniture instead of buying. Lots of companies do, as evidenced by the ample supply of providers available worldwide. But is renting right for you? Let’s look at the specifics.
One of the first things that becomes evident with an office furniture lease is that you need less money up front. Just one month’s rental payment and perhaps a security deposit should get you started. This obviously addresses any cash flow issues. If a company are trying to preserve as much cash as possible, then it may be best to rent for this reason alone.
Next, renting could give you access to higher-quality furniture and equipment you couldn’t otherwise afford to buy. This may be important to you if you want your office to have a particular style or look. Renting even allows you to pay attention to ergonomics to a degree that might not be possible when buying on a limited budget.
The big downside to renting is having that monthly lease payment in perpetuity. When you buy, it is a one-and-done deal. When you lease, you have to include monthly payments in your regular budget. Leasing may address a cash flow problem now, but will it create cash flow problems in the future?
Another con of leasing is that you never really own the furniture or equipment. At the same time, you are still required to maintain and insure what you’ve leased. Will you really have received your money’s worth at the end of the lease term?
Some rental companies will allow you to purchase your furniture and equipment at the end of the term. But when you combine the purchase price with years of rental payments, you will likely be spending a lot more than you would have by purchasing the same furniture and equipment right from the start.
A Careful Evaluation
As you can see, there are both pros and cons to buying and renting office furniture. Determining what is right for your business is a matter of a careful evaluation. It’s best to sit down with your team and talk over things like budget, ownership, quality, etc.
You might find that buying is a better option for you even though there will be some financial pain up front. On the other hand, renting might be better for managing your cash flow and giving you access to high-quality furniture and equipment. Whatever you do, don’t rush into a decision. Think it through from every possible angle.
Anna Stewart is a Content Creator working on behalf of Southern Office Furniture. If you are in need of high-quality modern office furniture in the UK, then Southern Office Furniture are here to help you find the right product for your business.