Is Office Furniture Leasing Right For You?
The office is an indispensable asset of a business. Without a physical office, an organization will have difficulty in managing and operating a particular industry or service. With this, every business, whether established or just starting, will need a large sum of money to get an office up and running. Whether buying or leasing office furniture will highly depend on the available capital or operating budget you have.
The largest chunk of the initial costs of business set up is the office fitting out the cost, which includes office furniture. A single set of mid-range office desk and chair, for instance, may cost hundreds if not thousands of dollars, and if you have over a hundred employees, that’s a hefty price tag to take. Furthermore, office furniture may not be a wise investment if you plan to list it as one of your business’ assets as the value depreciates over time.
Reasons Office Furniture Leasing is Worth Considering
One of the best if not the wisest, investment choices you can do, especially for smaller firms or start-up businesses, is to opt for office furniture leasing. Renting the needed furnishings for your office will cut your expenditures significantly while having more finances to focus on other business concerns. Besides, you will have a chance to test the waters. This allows you to have a dry-run on how the business will do before investing a large sum of money, reducing possible losses. You can also try different furniture styles or arrangements in your first few months of operation before acquiring the new furnishings.
Moreover, there are a lot of office furniture rental services available in the market; this means you will likely find the best suitable furniture sets for your business. Since these are specialty shops, you may even get great tips on which the best furniture to take.
Pros & Cons of Renting Office Furniture
To further help you in your decision-making process, we have listed below the main pros and cons of renting office furniture for you to weigh upon.
i. Bigger Cash Flow – This means you cut costs on your initial investment and have higher cash available for other more pressing expenses. Establishing a business has a lot of initial costs. Business permits, licenses, office space rentals, employee hiring, and marketing are only a few initial expenditures to name.
ii. Faster Lead Time – Delivering your rented furniture takes around 24 to 72 hours upon deposit, which means you will have your furniture faster than acquiring new ones. Rental furniture shops have a lot of sources and contacts, regardless of the number of kinds of furniture you need.
iii. More Style Choices – When you rent office furniture from reputable leasers, they’ll have a variety of furniture choices ready for your pick, this includes new and used office furniture. Office furniture rental services are very familiar with the different types and styles of office furnishings, so you can get expert advice before selecting which furniture to use.
iv. Installment Payments – Typically, most furniture rental services offer monthly payments, which will have a smaller impact on your finances, especially if you are still starting up with your business. Others may offer flexible payment scheme to suit your finances.
v. Flexible Use – All businesses change, and being able to change, add or return your office furniture is a convenience. If you see a future expansion or moving out from your business location, it is cheaper to opt for office furniture rental.
vi. Saves Time – Canvassing new office furniture can be tough. Most office furniture rentals offer a myriad of designs with their collections and sources. You will have a one-stop-shop saving you more time and effort. When it comes to business, time is gold, and undertaking the responsibilities of starting up, an office can be daunting.
vii. Save Storage Space – Having just the right amount of furniture when and where it is needed won’t demand additional office space. Extra room for storing furniture may be an unnecessary expenditure, especially if you’re renting an office space. You can return unused desks or cabinets whenever needed or rent an additional number of chairs or luxury furniture for a particular office event.
vii. No Maintenance Cost – The upkeep of new furniture can add up to added operational costs. For leased office furniture, the lessor will take care of repairs on damages as a result of wear and tear
viii. Added Perks – There are office furniture rental services who do offer free delivery and installation services. This means you’ll have added savings.
ix. Tax Deductible – Depending on your location, you can write off your rented furniture as a business expense.
i. Damaged and Subpar Goods – Since most furniture is leased by different businesses over the years, damage or malfunctions are unavoidable. In addition, quality may also be an issue as not all office furniture lessors are reputable and transparent about their products.
ii. Negative Credit Score – It’s normal for businesses to have setbacks and sadly, can cause backlogs on rental payments and if not mitigated immediately and may reflect a negative credit score.
iii. Liability Issues – Underlying or hidden charges may occur for damaged furniture. Make sure to read carefully and understandably the leasing contracts you sign.
iv. Costs Money in the Long Run – Just like renting a home, the incurred payments you’ve made throughout the years of renting office furniture can be significantly more than the actual purchasing cost of the furniture.
Used Office Furniture – Alternative To Office Furniture Leasing
Another way to cut your initial costs on office furniture is to purchase used office furniture. Businesses closing down or relocating outside Singapore are likely to sell their used furniture on leading classified websites such as Gumtree and Carousel. You can also find second-hand furniture stores on Yellow Pages or find an ample of furnishing shops online that offer refurbished office furniture.
For the novice entrepreneur or the small business owner, starting off with used office furniture has more gains than buying new ones. For one, the risk is higher on small or new enterprises, and by purchasing instead of renting will free you from commitments and leasing contracts.
The other advantage is that your start-up cost in purchasing used office furniture is not as high as acquiring brand new office furniture. Most second-hand furniture costs half if not one-third of its original price tag. This means you’ll have more cash to circulate and capitalize on. Another gain in having used furniture is adding assets in your company without a substantial investment.
One decisive advantage in opting for the used office furniture is that you can inspect or reject several damaged furniture before buying. Although, you can always do repairs on minor malfunctions or broken pieces all along.
How About Cheap Office Furniture?
Since the dawn of the industrial revolution, much has changed in our furniture production and materials. Mass production of furnishings has given consumers access to more products and styles. This means faux materials and imitations of luxury furniture are within arm’s reach regardless of your purchasing power or status. Though, these mass-produced items are, of course, subpar from their original pieces’ quality and authenticity.
But for the wise businessman, a piece of cheap office furniture may be the most practical cost-saving option. If you have 50 or more employees, your expenditures can run high if you’re not careful about such business decisions.
Arguably, quality over cost is the main reason why some owners prefer mid-range or even designer office furniture for their new office. This may be a reasonable choice, especially for well-established businesses.
With today’s manufacturing technology, cheap office furniture doesn’t necessarily mean low quality. As production processes improve so as the quality of furniture materials. Mass-produced furniture has improved significantly through the years thanks to advanced technology. For example, the flat-pack furniture, back in the day it was sold as flimsy and cheap hardware, seems impossible to assemble. Fast forward, the flat-pack or ready-to-assemble (RTA) furniture is now cut and built with more accuracy than ever thanks to computerized systems.
Another factor for the improved quality of cheap office furniture is the availability of inexpensive and durable materials. In addition, RTA office furniture has lower transportation costs and can be easily disassembled and stored away when not needed.
Modular furniture is another trend in cheap office furniture. The uniform and fast-produced furnishing mean you will have a myriad of colors and styles to choose from. With these advantages, investing in cheaper furniture brands might seem a great alternative than leasing out furniture. In the long run, you get more than you’ve bargained for.
Understandably, the pressures in finding that perfect furniture for your office can be mounting, especially when you are just starting off in your business. For a smoother decision-making process, always start from the basics. Know and understand your goals and the service you provide before anything else.
Having a clear vision and mission of your business helps you prioritize and keeps you on track. Though, whether, opting for an office furniture rental, used office furniture, or cheap office furniture, don’t forget to strike a balance between your goals and availability of resources for a reachable and tangible success.
If you have significant capital and are willing to take in the maintenance costs, then buying new furniture might be ideal. To reduce capital costs, meanwhile, office furniture leasing will be your top choice.
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