Buying a new copier does work better for some situations. If you have plenty of cash on hand and know that you’ll be happy with the machine’s capabilities for the years ahead, you might as well buy the one you want. You’ll never have to make a payment, you can deduct the depreciation, and you’re free to sell or donate the copier when you’re done with it.
Leasing copiers gives you different financial benefits. Swap the large upfront purchase with a small and controllable monthly cost, which you can deduct as an expense. And instead of having to figure out how to get rid of the things years from now, you send it back to us.
Still unsure? Here are three examples of businesses that should choose leasing copiers versus buying.
Your Business Is Growing and You Need Flexibility
Leasing copiers and other office equipment makes sense for startups and businesses looking to expand. You’d rather spend capital on materials, talent, marketing, and other things. Spread out payments by leasing copiers instead of dropping a few thousand at once.
Other benefits of leasing copiers for new and growing businesses include:
- Keep your credit line open for other purchases
- Return or exchange the copier later, at which point your needs may have changed anyway
- Get better technology than you might afford if purchasing outright
You Have Cash Flow, Not Cash on Hand
More established small businesses know how much money they can expect to make in a given month. The revenue is there, but you might not be sitting on a chunk of cash.
You need a new multifunction printer or copy machine to handle your day-to-day print needs and maybe some flashier brochures or marketing materials, and you’re wondering whether buying or leasing copiers fits your situation.
Leasing copiers typically involves zero down payment, just your first monthly installment. Leases work well when you don’t want to open or extend a credit line, or if you have a seasonal business and need a new copier during the off-season.
Your Five-Year Plan Includes Big Changes
We’ll always need to print documents for in-house use and for local marketing efforts. On the other hand, your printing needs could look pretty different in a few years.
Leasing copiers can make more sense if you plan on growing bigger, scaling back, switching to an online-only business model, or outsourcing your marketing instead of creating advertising materials in-house with a multifunction printer.
Leasing copiers also lets you upgrade to different technology at a later date and saves you from feeling stuck with equipment you might not need a decade from now.
Businesses in Santa Rosa Are Leasing Copiers
At Common Sense Business Solutions, we help our fellow small businesses make smart decisions when it comes to buying or leasing copiers. We want you to get the technology you need with the pricing option that works best for you.
Download our free guide for more help deciding whether to buy or lease, or contact us online anytime to ask about leasing copiers in Santa Rosa, CA.
Frequently Asked Questions
1. Why should businesses consider leasing copiers instead of buying them?
Leasing copiers can offer more flexibility and less financial strain for businesses. Instead of a hefty upfront purchase, leasing spreads costs out in manageable monthly payments, which can help with cash flow management. This is especially useful for businesses that need to preserve their working capital for other essential expenses like hiring or marketing. Plus, copier leases often include maintenance and service, so you can focus on business growth instead of worrying about repair costs.
2. How does copier leasing benefit growing businesses?
For growing businesses, leasing copiers offers much-needed adaptability. As your business evolves, so do your printing needs. Leasing allows you to upgrade or exchange your copier as you grow, avoiding outdated equipment that could slow you down. Leasing lets you access the latest copier technology without committing to a purchase that may not fit your needs a few years down the line.
3. Can leasing copiers improve a business’s cash flow?
Yes, leasing copiers can significantly improve cash flow since it eliminates large upfront costs. Instead of one big expense, you make predictable monthly payments, which can help you allocate funds to other areas like employee salaries or inventory. This is particularly beneficial for businesses with steady cash flow but limited liquid cash, ensuring they get the equipment they need without financial strain.
4. What are the tax benefits of leasing a copier?
Leasing copiers can offer potential tax advantages because lease payments are typically considered a deductible business expense. This can reduce your taxable income and lower your tax liability. For businesses seeking tax savings, leasing may be a strategic choice, especially since purchased copiers only offer depreciation benefits over time rather than immediate deductions.
5. How often can businesses upgrade leased copiers?
Most leasing agreements allow for upgrades at the end of the lease term, typically every two to five years. This allows businesses to stay up-to-date with the latest copier technology without being tied to outdated equipment. For companies that frequently need high-quality prints or advanced features, leasing provides an easy path to regular upgrades.
6. Is leasing copiers more cost-effective than purchasing?
Leasing copiers can be more cost-effective for businesses that want to avoid large upfront costs and potential maintenance expenses. The total cost over time may be comparable to purchasing, but leasing provides flexibility and includes service agreements, reducing unexpected repair costs. For companies wanting to keep equipment expenses predictable, leasing often makes better financial sense.
7. What happens if a leased copier breaks down?
Most copier leases include maintenance and repair as part of the contract, so if your copier breaks down, the leasing company will handle the repairs. This takes the pressure off your business and ensures minimal downtime. Many leasing companies also offer quick response times, so you can get back to work faster without stressing about additional repair expenses.
8. Do copier lease payments qualify as an operating expense?
Yes, copier lease payments are typically classified as an operating expense, which allows businesses to deduct them from their taxable income. This can be beneficial for businesses looking to reduce their tax burden without sacrificing access to essential equipment. Always consult with a tax professional to understand how leasing impacts your specific situation.
9. Are there any penalties for ending a copier lease early?
Many copier leases do have early termination fees if you end the contract before its term. These fees vary depending on the leasing company and the terms of your contract. It’s essential to read the fine print and understand the penalties before committing. Some companies may allow you to upgrade rather than terminate, so you can adapt your lease to fit your changing business needs.
10. Can seasonal businesses benefit from leasing copiers?
Absolutely, seasonal businesses often find leasing more practical than buying. With leasing, you don’t have to commit to a large purchase when cash flow might be inconsistent throughout the year. You pay monthly fees, which can be easier to manage and even pause depending on your leasing terms, making it ideal for businesses with fluctuating printing needs.
