Modern retail businesses simply cannot work properly without Point of Sale software. This software allows companies to receive and process customer payments in a secure way. Yet, there is one thing that many future business owners must take into account – even an average POS system can be quite expensive. That’s why many startups or new businesses with limited capital are wondering what to do – should they buy or lease POS software system. If you are one of them, you should analyze the advantages and disadvantages of both options before you make your final decision.
There are more and more businesses that avoid buying POS hardware and software. This is quite natural because the prices are relatively high. But, before you dismiss this idea, keep in mind that by buying POS system you will save money that you would otherwise need to share with a credit card processing company. In addition, there are many companies that allow users to return the equipment in case they are not satisfied with its performance. On the other hand, if you have a lease agreement, you can’t cancel it at any time. So, generally speaking, buying POS software/hardware is a relatively expensive investment, but it pays off in the long run.
It is obvious that businesses choose to lease because it is the more affordable option. For start-ups and new small businesses, this means avoiding a huge investment and replacing it with an acceptable monthly fee. They can use this money to strengthen and grow their business. Additionally, it is worth mentioning that leasing brings tax advantages too. Namely, business owners can claim the money they pay for leasing every year. The list of benefits of leasing doesn’t end here. Leased POS systems are automatically updated. We all know that technology is changing frequently and if you lease the equipment you will get these updates automatically without paying anything for the upgrades. Keep in mind that there are a small number of providers that don’t provide upgrades, at least not for free.
A third solution
Finally, we would like to point out that there is a third solution. It turns out that you can turn your tablet or even your smartphone into a Point of Sale system. These mobile POS solutions can be synchronized with card readers and cash drawers and you can use them at any place you want.