We’re all aware of the current financial crisis this country is going through and the uncertain times ahead.
With a possible recession, ever-evolving office space trends, and changing employee needs, it’s difficult to choose whether to invest your businesses capital into office furniture or to rent instead.
It’s a decision that could make a huge difference to your business in the coming months and years. Both options have their pros and cons and at Fluid, we can provide you with either solution to craft highly agile and flexible workspaces that stimulate collaboration, enhance productivity and ultimately propel company performance.
Understand the benefits and downfalls of both renting and buying, so that you can be sure you’re making the right decision for your business.
Capital vs. Monthly Payments
If your business has available capital to invest into purchasing your office furniture then you might prefer to buy.
As office furniture is considered as plant and machinery when it comes to capital allowance, it qualifies for AIA (Annual Investment Allowance) and can be deducted from profits before tax is calculated.
However, if your company does not have the capital to use, or very little, then renting can be a very attractive alternative for you. Freeing up capital to invest in the company’s future growth and long-term development plans.
Of course, renting your office furniture is a completely tax deductible expense and having low monthly payments can really help during the uncertain times we’re in.
Simplicity and Ease
Renting your office furniture can seem more complicated than simply buying the furniture upfront.
When you purchase your furniture, it’s just one transaction and you own it.
While renting, you have contracts, monthly payments and minimum terms.
Looking at the transaction alone, buying is simple and easy. However, when you consider the ease long-term, the hidden costs and efforts of owning furniture could really set you back with finances and time! (Think, maintaining and repairing, moving, storing, replacing and disposing of large amounts of furniture).
If your company has staff and systems in place to handle this, then buying really could be the simplest solution for you.
But if you don’t, renting your office furniture can be much more convenient.
With FluidSpace Flex, you have the option of a 3-month minimum rental term at which point, you can decide to return what you don’t need, upgrade to a new style or simply continue renting what you already have.
Which brings us on to the next consideration…
Asset Ownership vs. Flexibility
Would your business benefit more from the ownership of office furniture or having more flexibility?
Are there plans to grow and make changes within your business over the next 3+ years?
Or is your business well-established and in a position of certainty?
Maybe your company already knows what office furniture your staff prefer, in which case owning those assets could be the solution for your company.
These are some of the questions we’d suggest answering before making the decision between buying and renting.
If you anticipate change and growth over the next few years, FluidSpace Flex™ can be there to support your business. With more financial flexibility, you can rent high quality, agile office furniture that increases company performance.
If your employees aren’t getting on with the furniture that you’ve rented, you can simply swap it out for something else and channel your capital into business-critical opportunities instead.
Style and Originality
As an independent supplier of office furniture, we source some of the most aesthetically pleasing furniture designs from around the world.
Workspace office trends are continually evolving and it can be a huge factor in attracting customers, new employees and effect the productivity of your staff.
If you’re looking at investing in some acoustic meeting pods or some original breakout furniture, we can provide you with a single point of contact throughout the procurement and installation process.
If you have a large amount of capital to invest in your office furniture, it’s easy to source aesthetic office furniture for your company. However, if your funds are limited, your choice of furniture will also be limited.
Renting allows for lower monthly payments to access furniture that, otherwise wouldn’t be available to you with a smaller budget.
Ergonomics and Staff
With hybrid working (a mix between home and office working) now mainstream, it’s essential to understand your employees’ needs and expectations within their workplace.
Understanding the intricate ways office furniture can impact employee performance, job satisfaction and creativity will help you push ahead of your competition.
FluidSpace Flex™ helps you to become clear on your office ergonomics, what is and isn’t working for your employees and allows for easy switching of your office furniture, if you find that staff aren’t benefiting from what you’re currently renting.
There are currently over 22 million pieces of furniture being discarded in the UK and most of them end up in landfill.
If you’re looking to keep your office furniture for a very long time and not change it then purchasing might be suitable for you.
However, if you think you might need to change your office furniture because of changes in employees, staying ahead of evolving workplace trends or general uncertainty, then renting is probably the better option for your business.
Renting your office furniture reduces waste and can be the most sustainable and cost effective approach for your business.
So, ask yourself, how will your business plans influence your workspace, what changes do you anticipate over the next few years and do you need to be flexible right now?
Purchasing office furniture can be a great option for businesses but all things considered, FluidSpace Flex™ can set you apart from your competition, help to maximise your capital expenditure for business expansion, and give you the flexibility to keep up with changing trends.
View 5 benefits of office furniture rental for more advice on renting office furniture.