The most common misconception about investing in a piece of new equipment such as a copier or a printer is that it is expensive. A lot of offices and businesses don’t know that aside from buying, they have the option to lease or rent equipment. So what is the difference between leasing and renting?
In a lease agreement, you agree to pay a monthly fee for a specific period. You can save money that would otherwise be used to buy brand new equipment. The money can be used for other things. On the other hand, the lessor covers the maintenance and repair expenses.
When you lease equipment, you have an extended payment option with flexible payment terms. You don’t have to pay for the equipment upfront, and no capital expenditure is needed. You can pick your lease period, from 12 to 64 months. The payment option allows you to manage your funds easily while being tax deductible at 100%. You can also reclaim the entirety of your payment every three months. There is also a fair market value option when you lease a piece of equipment. At the end of your lease agreement, you have the option to buy the machine at its fair market value. The equipment needs to be appraised so you can know the value and the leasing company determines it.
Through leasing, you can avoid using your capital needlessly. You can also invest in more projects that are beneficial to your business because you can budget your money. Your credit lines will not be touched. It is also tax efficient. Your payments can be deducted from your profits that are taxable if you are paying corporation tax. This can help reduce the net cost of leasing your copier or printer. When you purchase it, you can get 40% of the price against tax in the first year. After that, you can get 25% of the outstanding balance. When you lease, you do not have to pay for the cost of the copier or printer immediately so you can get everything that you pay on by payment basis, either monthly, quarterly or annually.
Rentals are similar to leases, but they are more flexible. The main difference is the time frame. Rentals are usually every month. You can also upgrade or downgrade your equipment when you need to. You can also cancel your agreement as long as you give a notice 30 days before you do so. This is an ideal move because technology is rapidly advancing, and the latest copier may be considered obsolete in the next few years.
If you own a copier or printer, you can only upgrade it by disposing of or reinvesting your existing asset. With renting, you will cover service plus parts and supplies, and you can upgrade any time. Maintenance and repairs are also not a problem with renting because you can call your dealer for help and a technician will come to fix the issue for you.
Renting will allow you to use a better copier that what you can afford. You can order the latest multifunction printer without having to worry about the cost. Renting a piece of equipment can also benefit new businesses because they can use their capital to invest in other things while having the equipment that they need at the same time.
Deciding whether you should rent or lease is on you. If you are confident that you can pay your lease fee on time, then you can lease a piece of equipment. There are a lot of leasing companies that you can do business with, copier lease in Overland Park, and other places that can help you save your capital. Renting is ideal for those who only need a copier for a short period. This is a better option for you if you work on a project basis.
Whatever your decision will be, your local dealer will be more than willing to help you.