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Software Equipment Leasing

Software rental is very much like leasing equipment. Software leasing involves paying either a software provider or a third party an agreed upon amount each month – plus interest, of course – to lease software. Equipment rental differs a bit, however, in that the leased product is a bit more tangible. With software rental, instead of a piece of machinery or a top-of-the-line PC, you are actually financing a software license, or the right to use the software.

Software leasing is a great option for many businesses, especially those that use specialized, often expensive, software for their industry. Of course, a software leasing company can also finance common, everyday software, such as word processing and accounting software.

When considering whether or not to look into software leasing companies, ask yourself the following:

1. Is software leasing available for software that would improve your company’s operations?

2. Would your company benefit from leasing everyday software, such as word processing applications?

3. Should you consider equipment leasing? Software has certain requirement that computers must be able to meet, so it may also be time for a computer upgrade.

Look into software financing for "vertical" software

Vertical software is the kind written for specific industries, such as auto parts suppliers or mystery shopper companies. In other words, it's software that won't likely be found at your local computer or office supply store. Vertical software is typically more expensive because of the limited audience and is, therefore, a great candidate for software leasing.

Consider software leasing for "horizontal" software

Software financing isn't just for niche applications. Horizontal software, or the kind that can be used by a variety of industries, can also be leased. This is a good option for start-up companies or large businesses that need a significant number of software licenses.

Explore a software-equipment lease

You've leased the latest software, but now your computer equipment can't handle the technology! Thankfully, software and equipment lending often go hand and hand.
  • Include something in your software lease about version upgrades so you can get the latest software releases without having to pay more for it.