Owning a copy machine can be a financial burden for many small businesses. Aside from supply costs and maintenance fees, coming up with the initial capital to purchase the copier can stretch operational budgets beyond profitable limits. Copy machine leasing helps ease the up-front monetary investment and may provide a number of other attractive benefits.
You can lease a printer/copier in the conventional sense, but throughout the last decade, the idea of leasing has morphed into what industry experts refer to as managed print services. Managed print services go beyond simply leasing to take a holistic view of your printer needs. Often, this means the leasing cost is bundled with costs for maintenance and paper and toner so that businesses get an all-in-one package for their lease.
Big data and IoT have taken managed print services even further. Data can track your print usage down to the department level. Depending on the manufacturer or supplier, managed print services might include supplies, preventative maintenance, onsite support, billing and usage tracking, and more. For organizations with limited IT bandwidth, a managed services lease offers a path to streamlined management (and it’s just less hassle).
What are the advantages to leasing vs buying a copier?
Reduced Taxes
Did you know that you can lease equipment and still take full advantage of the Section 179 deduction? If you lease a piece of qualifying equipment with a guaranteed purchase option, you can deduct the full purchase price up to $510,000 from your gross income.
The obvious advantage to leasing or financing your copier and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment, without paying the full amount this year. The amount you save in taxes can actually exceed the payments, making this a very bottom-line friendly deduction and thus in many cases, the tax deduction will actually improve cash flow.
Capital Conservation
Paying the purchase price upfront for new technology can involve a sizable cash outlay. But leasing can free up that cash for other purposes. Monthly payments that are structured to accommodate cash flow requirements allow for the acquisition of the latest technology today.
Fixed Payments
With a copier lease, payments are fixed for the entire term of the lease. Knowing what payments to expect in advance enables you to budget and manage your technology equipment costs. If you buy and your equipment breaks down, upgrading or replacing it could require paying a large amount unexpectedly.
Ease of Adding Equipment or Upgrading
Leasing can allow for add-ons after the lease begins so you are not locked into one configuration like you are when you purchase a copier. Let’s say you need to add a staple finisher or need more speed. The right partner can offer you a favorable buyout if you need to upgrade or replace your copier.
General Rule: Lease what depreciates; buy what appreciates.
Copier machines depreciate over time, losing value due to use and to the constant introduction of newer, better technology. If your business purchases a copier, you can only upgrade in technology by investing in another new machine. You would also need to get rid of the previous model, adding to your time expenditures. In contrast, most copier lease agreements have options to upgrade the copier at a predetermined date. Such lease arrangements enable your business to always be in line with the newest office technology. Avoiding obsolescence also means more efficient copying since newer machines have lower per-page costs. Efficiency translates to increased profit and a greater return on your lease investment.
If your location is around Miami, you may also visit Copier Lease Miami and Copier Repair Miami or call Service Location Miami (305) 203-0533