Should I Lease A Copier For My Business?
You can end up paying more when you lease instead of buy due to accrued interest. However, typically a copier lease is structured so that the full lease payment is an immediate deductible expense. As you can deduct these payments as business expenses on your tax return, you can offset the net cost slightly. Most of the time it is easier to get a lease than a loan for a copier, and the lease payments are lower because you are not responsible for paying for the entire lifespan of the copier.
Many companies opt to lease a machine because they don't have the cash reserves or they want to conserve their cash flows. When you have a small upfront cost, you free up money that you can invest elsewhere. Some organizations also prefer to lease because it allows them to get a higher quality machine than they could afford to buy and provides the flexibility to upgrade as needed. If having the latest technology is critical for the success of your business, leasing is likely to be a more cost effective option.
With a copier lease, you only have to pay for the time that you use the machine. When the lease ends, the copier leasing company takes it back, saving you the hassle of selling or recycling the machine. Finally, most copier leases have a single price that includes maintenance and other services.
The biggest downside to leasing a copier is the accrued interest. It can also be difficult to keep track of the equipment over the lease term, particularly if you ever move the copy machine to a new office. If you decide to lease, you must have someone in charge of the agreement who has solid asset management skills.
Should I Buy A Copier For My Business?
If you have the funds to buy a copier, you are likely to save quite a bit of money during the lifespan of the copy machine. Buying is also more straightforward. You simply have to figure out what you need and then look for the best price, warranty, and service agreement. You get considerable tax and ownership breaks when you buy, which means that you can expense the full copier cost in a single year's time. Alternatively you can also opt to spread out the cost over several years.
Getting the money together is the biggest factor that keeps most small companies from buying copy machines. Buying also comes with the risk of obsolescence. While you save money buying instead of leasing, you are unlikely to get much money back from the copier if you do decide to sell it at some point.
UCI is the leading copier company in Amarillo, TX. We sell and service copiers, printers, and scanners. If you've been trying to decide whether you would rather buy or lease your next copy machine, feel free to contact us with any questions and concerns. We are here to help in every way that we can.