Costs, tax and budget
Should companies buy or rent office furniture?
Buying and renting serve different needs. When buying, the company pays for the equipment and takes it into its own assets. In the onyo rental model, it uses the equipment for an agreed rental rate and can have the agreed services handled for it.
Compare purchase price or rental rates, useful life, scope of services and the conditions for exit or return. A rental contract can have a fixed minimum term; a return contingent is not an unlimited right to cancel.
Renting can reduce the initial liquidity requirement. Whether and how a contract must be capitalised, however, depends on the contract, the accounting standard and possible exemptions – not on the product name 'as a service' alone.
Key points
- Purchase = ownership; rental = use for a rate plus agreed services
- Check minimum term and return contingents in the contract
- Accounting depends on the contract, not the product name
This page provides professional orientation, not legal or tax advice.