Determining whether to lease or buy a copier is a decision any new business owner must make. Although leasing reduces overhead in the beginning, you could end up saving money by purchasing a copier outright. Both routes have advantages and disadvantages for every business.
Leasing a Copier
Leasing a copier is ideal for those who wish to manage company cash flow better. With a lease, you pay a monthly fee for the duration of your lease. This is especially important if you need multiple machines to operate your business. Within your contract, you may have an option to purchase the units at the end of the lease period. Additional benefits of leasing include:
- Better model options – When you purchase a copier, the cost of each unit limits your spending. Leasing allows you to get a better brand with more advanced options.
- One low-cost monthly payment – Many companies roll all costs associated with the lease into a single fee. This includes lease costs, installation/setup fees, and support options.
- Upgrade sooner – With a lease, you can have a short-term commitment. Instead of being stuck with a copier for years, you could upgrade at the end of the agreement.
- Reduced credit impact – Leases work differently than traditional credit lines. Interest rates are set, and the lease isn’t reported as debt to financial institutions.
Purchasing a Copier
Buying a copier is ideal for companies that have been established and obtain the funds needed to buy the copies outright. This also offers you more flexibility since lease terms do not bind you. More advantages of buying a copier are:
- Option to sell – Since you own the equipment, you can choose to sell it and try to recoup some of your costs. However, keep in mind the value of the copier will depreciate over time.
- Lower overall costs – When you pay for the copier upfront, you are not subject to finance charges. However, your costs increase if you use credit to pay for the copier. Leasing rates are usually less expensive than a traditional loan and credit rates.
Whether you buy or lease a copier, choose a professional company that can match you with the best model for your needs. Our experienced team can guide you through the buying and leasing process and offer long-term support solutions for all our copier products. Contact us today to learn how we can help.