Setting up a new office, startup office in Chicago for example or business unit can be expensive in financial terms and a waste of time, often fundamental to the speed with which business has to be managed to take advantage of all the opportunities. The choice between buying furniture or renting furniture can make a big difference to your business as a whole – in this article; we will discuss the advantages and disadvantages of renting tables and chairs for your company.
Key Aspects Of Furniture Rental
Before any other aspect, the option to buy or rent your office furniture has to be thought of as a business strategy – incredibly, if financial resources are limited, or even if the unit that is being opened in a specific location is a venture, that is, it is a business that is being tested, in terms of volume, generation of contracts, acceptance of the brand/products in a given market, among other options.
Another aspect that should be considered refers to the operational aspects of the new business: the building/location is long-term, or even, as it is an introductory or exploration activity, it may be possible that there will be physical changes.
These actions have to be thought of due to the following aspects:
in short- and medium-term actions, the lease is undoubtedly more advantageous due to a lower disbursement and adequate to the volume of business and employees that are being mobilized in the new unit;
Another aspect that companies do not think about at first is the cost of obsolescence and degradation of furniture – because in a business in its initial phase – constant changes, assembly, and disassembly of furniture, as a rule, causes to be lost. various pieces;
for long lease periods, it is necessary that for the company to have advantages, it has the correct tax treatment, which will be seen later;
Advantages of renting office furniture
Furniture leasing means lower initial expenses so that the new business avoids large expenditures of financial resources in its beginning;
The rent of tables, chairs, and even cabinets, shelves, and everything that makes up an office does not affect the lines of credit of the new company and unit – not compromising possible fundraising needs or even acquisitions that focus on directly with the business objective;
Companies that operate with real profit can deduct rent payments in full as business expenses in the calculation of income tax – that is – after the balance sheet calculation, these expenses are deducted from profits, causing a real gain in determining the company’s profits;
It is much simpler for new companies to lease than to take out a loan or obtain credit to purchase furniture.