Buying a copier can be a financial burden for many small businesses. Aside from maintenance and supply costs, coming up with the capital to purchase the copier can stretch your budget. Copier leasing can help ease the up-front cost and may provide a number of other benefits. The key is to find solutions that work best for your business.
Office Copier Solutions That Work
Your office copier is integral to your daily operations. Multi-function copiers streamline many daily functions such as copying, printing, scanning, and faxing. Consequently, making the best choice between buying and leasing could potentially affect your business significantly in the long run.
It’s easy to buy a copier. Simply decide what you need, then go out and buy it. There’s no paperwork or hassle. Equipment leases often require you to maintain equipment according to their specifications, which can get expensive. Buying your own office copier also frees you up to use whatever maintenance provider you’d like. Buying equipment also comes with some tax benefits. You can deduct the full cost of newly purchased assets in the first year.
Starting a business can get expensive. You may not have a lot of free capital to buy an office copier with cash. Spending a lump sum on that can stretch you in other ways. Buying can also backfire if technological advances render your machine obsolete.
One of the biggest reasons to lease copiers is the low up-front cost. The monthly payments are more manageable for a company that may not have a lot of working capital to spare. Another advantage is the ability to keep up with the latest equipment trends. Every time your lease ends, you’re free to start another lease for a new machine. This allows you to stay ahead of your competitors. Leasing also provides a distinct tax advantage over buying. Whereas buying a copier allows you to deduct the full cost the first year, when you lease, the full monthly payment may be deducted for the entire length of the lease.
The main disadvantage to leasing is that you will pay more over time. A $5000 copier might end up costing you $6300 over the life of a 3-year lease, with fees and interest. However, this disadvantage is effectively mitigated with the tax advantages already mentioned. You also need to keep in mind you will be contractually obligated to maintain the lease for the agreed upon period of time.
A Few Simple Rules
A few simple rules may help you decide whether to lease or buy. If your equipment requirements are relatively small and you have the money, then buying might be the best option. You could save money in the end. If, however, you don’t have adequate funds to meet your equipment needs, leasing might be a better option. It will allow you to utilize other funds in better ways to grow your business.
To learn more about leasing or buying your office machines, Contact Us today.