ADVANTAGES OF LEASING OF COPIER
- LOW-COST MONTHLY PAYMENT
- NO CAPITAL OUTLAY
- NO DOWN PAYMENT
- Modern Performance and Features
When a business wishes to (more or less) own their copier equipment, they enter into a copier lease agreement. Here, a business can own a new or used copier by agreeing to set payments and a service agreement (more on that later).
One of the main advantages of leasing a business machine is that service and repairs are usually included in the negotiated price & almost all the “DIRECT MARKETING” like Canon, Ricoh or Xerox are leasing with the customer
This is all included in the service contract. Service contracts are usually based on a “per page” price. One price for black and white and another price for color. Make sure you compare these prices. There could be a large difference between the different copiers or between each of the different authorized dealers you may be getting a bid from.
INITIAL EXPENSE AND BUSINESS BUDGETING
Capital is another important consideration for any business. Business machines are expensive. Many businesses have to take out loans, and then the down payment on that loan and its interest becomes a factor. Leasing a copier doesn’t require the same upfront cost. Leases are often handled on a monthly basis, and the first payment is usually the same or close to the amount of subsequent payments.
Many times the last payment can be as little as 1 month lease amount for you to own the copier at the end of the lease. Knowing exactly what you’ll pay each month is a big benefit for budgeting as well. What do you think happens when you have purchased your copier and then have to replace an expensive part a few years later? Typically, businesses do not budget for these additional expenses. There’s no need to budget for a potential repair if that service is included in your lease.
Modern Performance and Features
When you purchase an office copier, it’s an investment. That investment has to last at least five years, and in many cases, a business is expecting 10 or even 15 years. A downside to this long-term purchase is that technology improves rapidly.
Within just three years, your purchased copier likely isn’t as fast as the new copiers on the market, and it probably lacks some features that would improve productivity. When you lease, you can lease on a short-term basis and have the option to upgrade your copier.
This way, you always have the latest hardware and software that can be used for your business. This can make a big difference in overall costs, production, and labor. All of these add up.
TAX ADVANTAGES
Leasing business machines can provide tax advantages as well. If you purchase a copier, you usually can only deduct a set amount each year based on a depreciation schedule (a calculated amount each year based on the purchase price and a set number of years),
which usually means 40 percent of the purchase price in the initial year and then 25 percent in subsequent years. Leases, however, are pre-tax expenses. You can deduct a lease payment each time it’s made. That means that you’ll deduct the full price of the copier faster.
It also means you’ll be able to deduct maintenance, repair, and other services as well. Another important reason that you should be leasing your next copier.
As you can see, it makes a lot of sense for you to consider leasing a copier or purchase a copier or rent a copier. It’s important for any business to weigh all considerations and make the right choice for your business.
If you are going down the path of leasing a copier and you want to know who may be the best leasing company, we’ve done the homework for you and picked the Who’s the Best Copier Leasing Companies That You Can Trust?
At IBL, we do our best to provide all of the information to our clients so that they can make informed buying decisions.
We love working with the most educated clients and we welcome them getting bids from multiple businesses before coming to us so that we can show them how they may be able to save more costs, improve their business workflow and towards to business digital transform to print less and integration with cloud solution
Interested in learning more about how office technology can provide you peace of mind and help you win more business? Then make an appointment with one of our business technology consultants. You won’t be disappointed.