Office Furniture Leasing
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.
Office Furniture RentalDave and Jessica went to an office furniture rental place and purchased all the furnishings needed to outfit their work and reception areas in the small building they rented at a local strip mall. The business was off and running finally, after many months of worry and hard decisions. All that was left to do now was to flip the open sign around so that it faced the street and then wait expectantly for customers to file through the door. Both business owners are confident that the training received earlier in the year will enable them to run the business professionally and with few complaints. Their customer service skills are sharp and both understand the importance of vendor relationships in the cleaning business. Now that the office is outfitted with furnishings from the local office furniture rental store, all was in order.
Several months back, Dave sat down with Jessica and thought carefully about the needs for the office, the space needed to accommodate visitors, storage space for files and cleaning supplies and the needs for the work space to carry out the daily tasks of the business. Therefore, each decided to sit down and draw out on paper desk configurations and file cabinet needs for their particular work areas. Jessica decided she would like to have a nice desk configuration in an L-shape, complete with a credenza above the computer area to store manuals, notebooks and computer disks. Since her desk would be closest to the front entrance, the material for the desk would be cherry wood with a glossy finish to project a professional image to the public. Dave decided his needs would be less flashy but more pragmatic, and so opted for a desk configuration in a grey tone with black accents which is more suitable for masculine tastes.
The furniture rental company they visited had all kinds of furniture in stock to meet the needs of both Dave and Jessica, and so each took quite a bit of time strolling about the warehouse shopping for that perfect desk. Since Dave and Jessica were new business owners just starting out, the office furniture rental store decided to cut them a break and provide a 30% discount to them, so that later on they might come back for further office needs. This was a great incentive for Dave to do all their shopping there, so in addition to the desks, office chairs and file cabinets were also purchased that day. The office furniture rental warehouse was only happy to assist. Once the desks and various other furnishings were chosen, the furniture rental company mentioned that there was a section in the warehouse devoted to floor coverings and rugs, which may be needed for the front entrance to the business. Dave and Jessica looked at each other, smiled and strolled back to that area to see what was available.
After walking around for about ten minutes, both came to a halt in front of a rug in various shades of green, sporting modern geometric shapes and patterns throughout the design. Nothing needed to be said they told the vendor this was the rug for them, and he had it loaded into their vehicle. "But my God shall supply all your need according to His riches in glory by Christ Jesus" (Philippians 4:19 KJV).
Just as the new business owners were getting out of the vehicle back at the office, the custodian of the building was leaving. As the custodian came out, he smiled and waved at Dave and said I just finished stripping and waxing that front entrance to make it extra spiffy for opening day but there is a gouge that is pretty unsightly that I cant do anything about. David mentioned that he and Jessica found a great looking entrance rug at the furniture rental company that would perfectly cover that ugly mar in the floor, so the custodian need not worry about that. After laying the rug at the entrance way, both Dave and Jessica knew they made the correct choice the colors seemed to complement the interior color and trim. Not bad since the rug color was chosen without paint swatches! Even if the colors didnt work out for them, the furniture rental company said that the purchase could be returned and exchanged for a rug of their choice.
A few hours later, the desks and file cabinets arrived from the furniture rental company in a large truck. The two men inside the truck jumped out, greeted the business owners with a hand shake, and asked where the furniture should go. The delivery men were directed to the inside of the office building where each desk, office chair and file cabinet was carefully placed. Once the delivery people left, Dave and Jessica stepped back in a moment of silence to admire the purchases and imagine all the work that would be done over the coming months and years. None of this would have been possible if the office furniture rental store had not allowed the thirty percent discount, because the start up budget was tight. However, finally, all was ready for that first day of business, and both were eagerly looking forward to greeting the first customer to walk through the front door.
A few months later, business was booming, and the franchise owners decided to visit some other furnishings stores to see if the purchases made were a good deal. In fact, all the other stores in the area were quite a bit higher in price for what was purchased than the store Dave and Jessica chose. This made both very happy and confident in the ability to make sound business decisions. Also, a solid business relationship had now been established which would last for many years into the future.