Office Furniture Leasing
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When does office furniture leasing make financial sense? The answer to that question takes several factors into consideration. For example, a new business may have a lot of startup costs. Getting the capital to cover all these expenses may not be easy, especially since the new venture doesn't have a credit history. Instead, lenders will need to rely on the credit histories of the individual entrepreneurs and the strength of their business plan. The determination of whether or not to approve the loan will be based on that information. The entrepreneurs may want to lessen the amount of startup capital that is needed to launch the new venture for two primary reasons. First, a lesser amount may increase the likelihood of getting the loan approved. Second, the interest costs will be less on a reduced loan. For these reasons, the entrepreneurs may look for ways to reduce their capital requirements. One way to do that is to lease the necessary furniture and/or equipment. The entrepreneurs will be able to contract and make financial arrangements with an office furniture leasing company separate from the startup loan.
Companies that lease furniture and equipment often offer additional services. For example, they may have employees who are especially trained in designing office space for maximum efficiency. These experts can help their clients select the appropriate furnishings and decor for the clients' own employees and potential customers. For example, let's say several partners are opening a new ad agency. The partners want the office space to inspire creativity, but they also need a reception area, a conference room, private offices, and a storage area. A design expert from an office furniture leasing agency can help the partners select the best combination of pieces for each of these areas. The reception area will make a great impression on the partners' potential clients. The conference room will provide space for creative brainstorming sessions in addition to providing the formality needed when making presentations to clients. The private offices will be tastefully furnished and the storage area will house the needed filing cabinets and shelves for a growing ad agency.
An office furniture leasing company may provide services to other markets in addition to corporate offices. For example, model homes in new housing developments are often furnished to appeal to prospective buyers. Leasing companies often provide these furnishings, the artwork, and other design elements such as draperies, linens, and plants. People who are selling their homes are often advised to stage the house. Again, the plan is to make the home appealing to prospective buyers. Especially in a tough selling market, the expense of home staging may increase a home's attractiveness so that it sells more quickly than an empty house or one that is cluttered with the seller's personal belongings. Trade shows and other major events may also seek the services of a furniture leasing company to help design and furnish selected spaces. Perhaps a trade show vendor needs an office suite to showcase his innovative communication network. A major event may want to provide a comfortable break room for its headline entertainment. In both these instances, an office furniture leasing company may be contracted to provide, deliver, and set-up the selected pieces.
The Old Testament records the historic event of Queen Esther's courage and wisdom on behalf of her people, the Jewish inhabitants of ancient Persia. "Now it came to pass on the third day, that Esther put on her royal apparel, and stood in the inner court of the king's house . . . and the king sat upon his royal throne in the royal house, over against the gate of the house. And it was so, when the king saw Esther the queen standing in the court, that she obtained favour in his sight" (Esther 5:1-2). Esther demonstrated courage by appearing to the king without permission and wisdom by dressing in her royal apparel. She wanted to make a favorable impression. Similarly, businesses and other entities can contract with office furniture leasing companies to help them make favorable impressions on their clients. A leasing company may specialize in certain types of styles, but many provide a wide range of collections so that the client can choose between the formality of traditional or classic decor, or the casual atmosphere of something more contemporary or modern.
A cost analysis can be done by the financial department to determine if contracting with an office furniture leasing company makes economic sense for an established business. Some businesses operate on a seasonal basis, such as the overwhelming need for tax specialists during the first quarter of the year when so many people need help with tax preparation. Leasing office furniture and equipment for a few months out of the year may make more financial sense than buying the needed furnishings and then having to store them when they aren't needed. Similarly, political campaigns need furnishings and equipment for a temporary amount of time. Once the campaign is over, the campaign offices are often closed. Here again, it may make more sense to lease furnishings and equipment. When the decision is made to contract with an office furniture leasing company, the decision-makers should read the terms and conditions of the agreement very carefully. Provisions regarding delivery, maintenance and repairs, the length of the contract, and other special services, such as design assistance, need to be clearly understood by both parties. Potential clients will also want to be sure that the leasing company is reputable and provides great customer service.
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