Leasing a copier instead of purchasing one can be a great decision for some businesses. Copier leasing can help save you money and give you many unique benefits. If you’re trying to decide which is the best choice for your company, ask yourself the following questions.
Does it make sense financially?
The decision to lease or buy a copier is often primarily a financial one. In order to buy a copier, you will usually need to come up with a large sum of cash or be able to obtain financing. For some businesses, especially those just starting out, this is not always possible. Copier leasing allows you to pay one predictable monthly sum, making it easy to plan your budget accordingly. At the end of your lease term, you’ll be able to decide whether you wish to continue with the same lease, renegotiate the terms, or take the plunge and buy a copier. Another benefit to copier leasing is that it will allow you to write off the lease payment every month as an ongoing business expense. There are many other facets of copier leasing that can affect your bottom line, so be sure to pay attention to terms relating to buyouts, early termination, and insurance.
Would I benefit from frequent upgrades?
Copier leasing involves essentially renting a copy machine for a set term. At the end of the lease, you can choose to keep your current machine or upgrade to a newer model. Following this path will allow you to trade up for a more efficient copier with new features, sometimes as often as every two years. In contrast, when businesses buy a copier outright, they usually keep the machine for many years until it wears out completely. This means that a company may have to contend with using a machine that is outdated and may struggle to keep up with the demands of the industry. To help you decide which choice is best, it is helpful to look at the types of projects you do in your office. If you primarily need to print and copy basic documents, a cutting edge machine may be more than you need. On the other hand, if you do a lot of scanning, creative projects, or just generally print at a high volume, upgrades may make your life much easier.
What kind of service and maintenance do I need?
Maintaining the functionality and value of your copier is vital to your productivity, no matter whether you lease or buy. Copier leasing usually has the added benefit of a service agreement, meaning the company you lease from will be there to assist you with repairs, replacement of parts, and preventative maintenance. Plus, if your copier happens to die completely, the service company will most likely bring you a new one ASAP. When you buy a copier, you will likely still have the option of paying for a service agreement or warranty, but it will often cost more than it would through a lease. Perhaps you or one of your employees is a copier guru and can handle the repairs and maintenance required to keep your copier in tip-top shape. If so, a service agreement may be superfluous. For most businesses, however, this is not the case. Any problems with the copier usually require help from professionals.
There is no simple, correct choice when it comes to deciding between copier leasing or buying. Your financial situation, need for up-to-date technology, and preference for service agreements will all factor into your decision. If you need more help, check out this guide to Leasing vs. Buying.
FAQ Section: Copier Leasing
1. Is leasing a copier better than buying for small businesses?
Leasing a copier can be a smarter financial choice for small businesses that want to avoid large upfront costs. When leasing, you pay a fixed monthly amount, allowing you to allocate your cash flow to other business needs. Plus, you can upgrade to newer models more frequently without worrying about the depreciation of a purchased machine. For startups or businesses with limited budgets, affordable copier leasing options can ensure you stay competitive while avoiding large capital expenditures.
2. What are the financial benefits of leasing a copier?
Leasing a copier offers predictable monthly payments, helping businesses budget more effectively. Unlike buying, which requires a substantial investment, leasing frees up capital for other business expenses. Additionally, copier lease payments may be tax-deductible as operating expenses, reducing your overall tax liability. Over time, this can reduce your taxable income, giving you a financial advantage. This is especially useful for companies with tight budgets that require cost-effective copier solutions.
3. Can I upgrade my leased copier during the lease term?
Yes, one of the key benefits of leasing is the ability to upgrade your copier. Most leasing agreements allow you to trade in your machine for a newer model before your lease ends, helping you stay ahead of evolving business needs. By upgrading, you ensure access to new copier features and improved printing efficiency. For businesses with high print demands, these upgrades can boost productivity while keeping you current with the latest technology.
4. What happens if my leased copier breaks down?
Copier leasing often includes a service agreement, which covers maintenance, repairs, and part replacements. If your leased copier breaks, the leasing company typically provides a repair technician or even a temporary replacement to minimize downtime. This is a significant advantage over owning, where repairs could mean long wait times and higher out-of-pocket costs. With a lease, your copier remains under continuous service, ensuring optimal performance and reducing business interruptions.
5. How long are typical copier lease terms?
Copier lease terms usually range from 2 to 5 years. The duration depends on your specific business needs and financial plans. Shorter leases offer the benefit of frequent upgrades, while longer leases can result in lower monthly payments. It’s essential to review the terms carefully, considering factors like lease term flexibility, maintenance agreements, and total costs. Choose a term that matches your company’s growth trajectory and print volume requirements.
6. Can leasing a copier improve my cash flow?
Leasing a copier helps improve cash flow by avoiding a large upfront payment and distributing the cost over time. With predictable monthly payments, businesses can budget more effectively and preserve their capital for other operational expenses. For startups and businesses with limited budgets, this can be a crucial advantage, allowing them to grow without the burden of large expenditures.
7. What types of copiers can I lease?
You can lease a variety of copier models, from basic black-and-white machines to multifunction printers (MFPs) that handle printing, scanning, faxing, and copying. Many businesses opt for multifunction copiers to save on space and cost. Depending on your industry, you may need high-volume or color printing capabilities, which are also available through leasing agreements. This flexibility makes leasing ideal for businesses with varying demands and print needs.
8. What are the tax advantages of leasing a copier?
Leasing a copier can offer tax advantages since monthly lease payments may qualify as an operating expense, reducing your taxable income. Instead of depreciating the copier over time as you would with a purchase, you can deduct the full lease amount during the tax year, providing immediate savings. Many businesses take advantage of this tax benefit to reduce their financial burden. Consult your accountant to understand how this applies to your specific situation.
9. Do I need to provide my own maintenance for a leased copier?
No, most copier leases include a maintenance agreement where the leasing company handles repairs, toner replacement, and part servicing. This takes the burden off your IT team and ensures that your copier is always in optimal working condition. If anything goes wrong, the leasing company will typically dispatch a technician quickly, minimizing downtime and keeping your business operations running smoothly.
10. Can leasing a copier help my business scale more efficiently?
Absolutely. Leasing a copier gives businesses the flexibility to scale their operations without committing to expensive purchases. As your business grows, you can upgrade to more advanced copiers to handle increased print demands or more complex tasks like scanning and faxing. With leasing, you can easily adapt to changing business needs without the financial strain of purchasing new equipment. This makes copier leasing a great option for businesses in growth phases.
