Upgrading your IT hardware without impacting cash flow | Ecofina
Upgrading your IT hardware without impacting cash flow: the guide for Swiss SMEs
In an environment where technological cycles are accelerating, a 4-year-old computer is already obsolete, and a 6-year-old server becomes a security risk. For Swiss SMEs, putting off the renewal of their IT equipment means running the risk of losing competitiveness, productivity and data security. However, funding a complete renewal all at once can tie up tens of thousands of francs in cash flow. IT leasing offers a practical alternative.
Direct purchase vs IT leasing: 4-year financial comparison
To illustrate the difference, let us take the example of an SME that is renewing 20 workstations and a server for a total of CHF 60,000.
| Criteria | Direct purchase | IT Leasing (48 months) |
|---|---|---|
| Same-day cash outflow | CHF 60,000 | CHF 0 |
| Monthly rent | — | CHF 1,380 |
| Total cost over 4 years | CHF 60,000 | CHF 66,240 |
| Tax deductibility | Partial depreciation | 100 % deductible expenses |
| Residual value at 4 years | ~CHF 6,000 (deprecated) | Automatic renewal |
| Risk of obsolescence | Driven by the company | Managed by the contract |
Over four years, the total cost of leasing is slightly higher than purchasing. However, the comparison changes radically when factoring in the time value of the preserved cash flow, actual tax savings and the opportunity cost of 60,000 CHF tied up.
What IT equipment can be financed through leasing in Switzerland?
IT leasing covers a wide range of business hardware:
Workstations & mobility: Business desktop and laptop computers, high-performance workstations, monitors, tablets, and professional smartphones.
Network infrastructure & servers: Physical servers and NAS, network equipment (switches, routers, firewalls), backup and storage systems.
Telephony & communication: IP telephone exchanges (PBXs), video conferencing equipment, unified communications systems.
Print & copy: Professional multifunction printers, wide-format printing systems, production copiers.
Security & access control: IP CCTV systems, biometric access control, perimeter security equipment.
Can software and licences be funded?
The question comes up frequently. In Switzerland, software and licences can in certain cases be included in a leasing contract, provided they are inextricably linked to the financed hardware. For example:
- An operating system or an office suite pre-installed on the hardware
- An industry-specific management software package supplied with the server hardware on which it runs
- Perpetual licences tied to a specific physical infrastructure
By contrast, SaaS licences (cloud subscription-based software) are generally not eligible for traditional leasing. For these items, a dedicated services contract or a revolving credit line may be more suitable.
What happens at the end of the contract?
At the end of the IT leasing contract, you generally have three options:
Option 1 — Buyback of the equipment at residual value. You become the owner of the equipment for a nominal fee (often 1 % of the original value or CHF 1, depending on the contract). This is ideal if the equipment still has value to you.
Option 2 — Fleet renewal. You are signing a new leasing contract for latest-generation equipment. It is the most common option: your fleet always remains up-to-date without any significant cash outflow.
Option 3 — Return of equipment. The equipment is returned to the lessor, who refurbishes or resells it. You leave without any obsolete hardware on your premises.
Case study: a Geneva-based fiduciary with 15 employees
Fictional case for illustrative purposes.
The situation: Trust company based in Geneva with 15 employees. Ageing IT infrastructure (5-6 year old computers), frequent slowdowns, and compatibility issues with client software. The managing director wants to renew the entire hardware fleet but does not want to tie up CHF 45,000 in a single cash outflow.
The Ecofina solution:
- 15 professional portable workstations + 15 dual-display screens
- 1 redundant NAS server + secure network infrastructure
- Total value: CHF 45,000
- 48-month lease agreement — monthly rental: CHF 1,030
- Commissioned within 3 weeks of signing
The results: Workstation boot-up times reduced by a factor of three. No more breakdowns or slowdowns. No upfront costs. Rent is 100% tax-deductible under the % scheme. Estimated productivity gains of 45 minutes per employee per week, equivalent to CHF 2,800 per month in time saved.
FAQ — IT leasing for Swiss SMEs
Is an initial payment required for IT leasing?
No. Ecofina offers zero-deposit IT leasing solutions for SMEs with a standard risk profile. A quick analysis of your situation is all it takes to draw up a proposal.
What is the minimum duration of an IT leasing contract?
IT leasing contracts generally last 24, 36 or 48 months. Durations of 12 months exist for certain rapidly obsolescent hardware, but involve higher rentals.
Is IT leasing possible if my company is newly established?
Yes, but specific conditions may apply for businesses under 2 years old. A guarantor or an additional guarantee structure may be required. Contact Ecofina for a personalised analysis.
Who looks after maintenance and repairs during the lease?
That depends on the type of contract. In a financial lease, maintenance remains your responsibility. In an operational lease with integrated services, certain contracts include preventive maintenance and technical support. Ecofina can guide you towards the most suitable option.
Renewing IT infrastructure is no longer a question of available budget, but of financial structuring. IT leasing allows Swiss SMEs to remain technologically competitive without sacrificing their operational cash flow.
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