How technology renting works: everything the CEO needs to know before deciding

More and more CEOs and CFOs of mid-sized companies in Mexico are hearing about technology renting (operational leasing). But with the terminology—renting, leasing, operational leasing, technology financing—it is easy to get confused and difficult to make an informed decision.

This article is a straightforward guide, without unnecessary technical jargon, so that the decision-maker understands exactly how it works, what it covers, what advantages it offers compared to other options, and how to evaluate whether it is the right choice for their company.

What is technology renting?

Technology renting is an operational leasing model through which a company accesses the use of equipment or technological solutions by paying a fixed monthly fee for a set period, without acquiring ownership.

The difference with other forms of financing is significant:

What a renting contract with DITESA includes

• Equipment configured and ready to work from day one: we do not deliver generic hardware that later needs internal configuration.

• Preventive and corrective maintenance: throughout the duration of the contract, the provider is responsible for maintenance. If anything fails, it is repaired or replaced at no additional cost.

• Insurance against theft, loss, and accidental damage: one of the most valuable elements, especially in Mexico where corporate equipment theft is frequent.

• Technical support: access to support for incidents related to the equipment during the contract period.

• Sustititution in case of incident: if equipment is stolen or suffers irreparable damage, the provider replaces it according to the terms of the included insurance.

• Lifecycle management at the end of the contract: the provider collects the equipment and manages it properly. The company does not have to worry about retiring assets or secure data erasure.

• Renewal with updated technology: at the end of the contract, the company can renew with new-generation equipment.

What types of projects are covered by technology renting

User equipment

Laptops, desktops, tablets, corporate smartphones. This is the most common use. It allows all employees to have updated equipment without a high initial capital investment.

Infrastructure equipment

Servers, storage, networking equipment (switches, routers, access points, firewalls). The company can modernize its entire network infrastructure or server room under a monthly payment plan.

Printing and communication solutions

Multifunction printers, video conferencing equipment, unified communications systems.

Comprehensive technology projects

This is the key differentiator of DITESA: structuring the financing of complete technology projects under a renting or flexible financing scheme. A project that would cost 800,000 pesos in upfront purchase can be structured as a monthly fee of 22,000 pesos over 36 months, with everything included.

The tax advantages of renting in Mexico

• Immediate 100% deductibility: renting fees are operating expenses deductible in the period they are paid, not assets depreciated over several years. This leads to an immediate reduction of the ISR income tax base.

• Off-balance sheet: rented equipment is not recorded as company assets, improving financial ratios like Return on Assets (ROA).

• VAT credit: the VAT on renting fees is creditable month-by-month, just like any other operating expense.

It is important to note that the tax benefit of renting must be evaluated on a case-by-case basis with the company's accounting department.

How a renting contract is structured: what to review

• Duration and exit clauses: contracts are usually for 24, 36, or 48 months. What happens if the company needs to exit the contract early?

• What is and isn't included in the service: verify if maintenance, insurance, and technical support are included or are additional services.

• Insurance policy terms: coverage, insured amounts, and claim processes. In cases of theft, replacement times are critical.

• Renewal or return processes at the end of the term: how is the return handled? What happens to the data on the equipment?

• Scalability: can the contract be expanded if the company grows and needs more equipment before the period ends?

Renting vs. buying: the question the CEO must ask

The right question to evaluate if renting is convenient is not "is it cheaper?". It is "which model is more convenient for the company, considering cash flow, tax impact, operational risk, and the need to keep technology updated?"

DITESA IT Solutions offers renting schemes and technology financing for mid-sized companies in Mexico, with coverage for any type of project. More information at:

https://www.grupoditesa.com.mx/it-solutions

Do you want a personalized renting analysis for your company?

At DITESA, we present you with a concrete proposal: which equipment or projects could be covered by renting, how much the monthly fee would be, and what the service would include. No obligation, just clarity.

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