For many Canadian small and mid-sized businesses, deciding whether to lease or buy IT devices like laptops, desktops, and servers is an important financial and operational consideration. Leasing means you pay a regular fee to use the equipment over a fixed period, while buying involves a one-time purchase. Each approach affects your cash flow, technology refresh cycles, and support options differently.
Why device leasing can matter for your business
Choosing how to acquire your hardware impacts more than just your budget. Outdated or malfunctioning devices can cause downtime, slow staff productivity, and increase cybersecurity risks. For example, older machines may no longer receive software updates or security patches, leaving your business vulnerable to data breaches or compliance issues, especially if you handle sensitive customer or employee information.
Leasing often includes options for regular upgrades and maintenance, which can help keep your technology current and secure. This reduces the risk of unexpected failures and costly emergency repairs that disrupt operations. It also helps maintain employee satisfaction by providing reliable, modern tools.
A typical scenario: How leasing supports smooth IT operations
Consider a Canadian company with 50 employees that relies heavily on cloud services and SaaS applications. If they buy all their laptops outright, after three years many devices may slow down or fail, forcing the IT team to scramble for replacements and data recovery. This can lead to lost productivity and potential data loss if backups aren't current.
If instead they lease the devices through a managed IT provider, the provider schedules regular hardware refreshes and handles maintenance. When a device fails, it's replaced quickly under the lease agreement, minimizing downtime. The provider also ensures backups are in place and security patches are applied, reducing cyber risk and helping the business meet privacy expectations.
Checklist: What to consider when evaluating leasing options
- Ask your IT provider: What is included in the lease? (e.g., maintenance, repairs, upgrades)
- Compare total cost of ownership: Include lease fees, support costs, and potential downtime expenses versus upfront purchase costs.
- Check upgrade policies: How often can you refresh devices? Are newer models available during the lease term?
- Clarify end-of-lease terms: What happens to data on devices? Are there options to buy or return equipment?
- Review support and warranty coverage: Is on-site support included? How quickly are issues resolved?
- Assess your internal IT capacity: Can your team handle device maintenance, or would leasing with managed support reduce risk?
Next steps for your business
Leasing devices can help Canadian SMBs balance cash flow, keep technology current, and reduce operational risks. However, it's important to carefully review lease agreements and support services to ensure they meet your business needs. Speak with a trusted managed IT provider or advisor who understands your industry and can help you weigh leasing against buying based on your specific situation and growth plans.