There are many reasons why business owners would rather opt-in to leasing an office copier which include: one low monthly payment, no down payment, quicker turnaround time for upgrading your copier machine, and keeping your capital for other business expenses. If you think about it, purchasing a copier machine outright means that you have to take care of supply costs and maintenances fees yourself just to name a few. Here are a few other reasons why leasing your copier will benefit you in the long run.
If you are one of the few companies that just happen to have a lot of hard cash sitting in your bank account, then you can always purchase the machine upfront. It will save you a few extra leasing points and will save you a few extra dollars. Whether you pay for it all now or decide to lease it, they will both end up lasting you the same amount of years. Additionally, when you purchase a copier, you can do whatever you want with the device and can be a great tax deduction. However, the majority of small-to-medium size businesses (SMBs) today would rather put their cash to better use by investing it into other profitable areas such as marketing, inventory, or other forms of technology. This is because small business seldom has unlimited capital at their disposal. It would be a poor move on the business owner’s part to invest in an office technology that will only end up losing value over time rather than saving financial resources for other business opportunities. It is also good to point out that some lease agreements may even include the cost of supplies which only continues to benefit the owner by reducing the initial payout.
Budgeting And Expenses
Even the lowest-performing copier machine can get expensive. What typically ends up happening is that businesses will take out a loan, make a down payment on that loan, then to pay off the entire loan they must factor in interest fees. Leasing a copier, on the other hand, doesn’t have the same upfront requirements. When leasing a copier you will first establish a monthly payment plan so that you can better arrange your financial resources. The good news is that your first payment is usually fairly close to the regular monthly payment you end up setting up. You also have some flexibility of choosing the length and terms of your lease so that you can arrange your expenses in the best way possible. It’s common for the last payment to be as little as $1 so that you can own the copier and the end of the lease.
Purchasing a big-ticket item like a copier machine means that you are committed to growing your company. Investments like these usually mean that you are expecting to get at least five good years out of this machine with an additional ten to fifteen years of constant maintenance and repairs. The issue with purchasing a machine like this is that technology changes almost every year. It’s so fast that in less than two to three years your purchased copier will likely be slower than some of the newer copier models that are coming out in the market and will lack some of the new features that were created to improve office productivity. This means if you are looking to upgrade your technology, you will need to purchase a whole new copier machine. In addition to this expense, you will need to get rid of your old model which tags on some additional time and expenditure. By choosing to lease your copier machine, you will have the option to upgrade the copier at a predetermined date. Most lease agreements are designed so that business owners can take advantage of the newest office technology when it becomes available. Be as efficient as possible translates into increased profits and business growth.
The Tax Advantage
Choosing to lease your copier machine also has the potential to provide you with some tax advantages. When you purchase a copier, you are only able to deduct the machine’s depreciation, which will typically be around 40 percent of the purchasing price the first year followed by a 25 percent of the purchasing price in the subsequent years. Leased copiers, on the other hand, are a pretax expense which means that you can deduct the entire payment each time it’s made. This means you can deduct maintenance, repair, and other services that are associated with your office copier payments. This is just another good reason why you should consider leasing your next copier.
After reading this article, you can see why it would make more sense for you to consider leasing a copier. Having the facts is important when it comes to buying a copier machine. If you’ve chosen to go down the path of leasing your copier machine but don’t know where to go from here, then it’s time to contact Compare Business Systems. We’ve been rated one of the best copier companies in Orange County and Los Angeles County due to our amazing customer service. Browse through our Google reviews to see what some of our customers are saying about us. And if you currently have a copier vendor that isn’t living up to your expectations, please make sure to ask us about our free copier upgrade program.