Whether you’re a small start up business or a well established business requiring a photocopier for the office you’ll more then likely be unsure as to whether it’s best to lease or buy a photocopier.
So we’re going to take you through the pros and cons of both, to help make the decision easier.
Leasing gives you the ability to get the latest technology at an affordable price. The copier has changed so much over the decades, from strictly being just a copier to now being able to perform multi-functions from copying, print, scan and fax and with that can come a hefty price tag.
Choosing to lease a photocopier allows you to take advantage of keeping cash flow in the business. With leasing, your payments will never rise whilst providing a credit facility to your business which will not change or be recalled for the life agreement.
Further benefits include:
- 1. Low upfront costs, the majority of companies offer leases up to 3 months, before the first payment is taken at no extra cost.
2. To meet your cash flow needs, payments can be structured – whereby you can determine the duration of your agreement and the rental payments at the outset.
3. A finance lease is treated as a fixed asset on your balance sheet
4. As your business needs changes, leasing allows you to add or upgrade your equipment as your needs changes – and technology innovations evolve
5. Leasing is essential to business planning: 90% of Britain’s top companies use it to finance their equipment. With over 80% of Copy Print Services customers preferring to lease their equipment.
However there are some cons to leasing:
Due to interest, leasing will always mean you’ll end up paying slightly more
You don’t own the equipment
If you have signed up for a 3-year lease, you have to pay a settlement fee if you decide to stop using the equipment
The benefits of buying a printer outright are:
- You wont pay interest, so the cost will be less than leasing, making it cheaper in the long run.
- No 3-year minimum trading required – leasing companies tend to require 3 years trading history before they can allow a lease to go through. With no leasing companies’ involvement in purchasing outright, companies that have not been trading for 3 years are able to get their photocopier.
- Less paperwork, no monthly payments
and the cons to buying:
- Uses up your liquid capital/cashflow
- Office equipment is a depreciating asset, it may be best to invest the money elsewhere into your business for a better ROI
- You’ll be required to pay for your own repairs and will rely on the manufacturer for technical support which can be costly if you need to buy any new parts.
Now we’ve outlined the advantages and disadvantages of both lease and buying a photocopier outright, why not get in contact with us and see how we can help you. We have a wide range of printers and photocopiers to suit all requirements and budgets.