A photocopier lease is one way to get around the initial capital outlay needed for outright purchase. Although the total outlay cost is higher with leasing a copier as opposed to upfront acquisition, there’re good reasons to consider it as a way of financing for business equipment.
Leasing is a tax efficient and inexpensive form of finance, allowing economical trade-up access to up-to-date technology at the appropriate time. Being an economical solution to purchasing a new costly photocopier, leasing is suitable for all businesses be it a start-up or a fortune 500 company.
We hope this comprehensive photocopier lease guide helps with understanding the advantages of lease finance in addition to providing helpful advice if you want to lease a copier. If you’ve any burning questions don’t hesitate to get in touch with us:
Table of Contents
Advantages of Leasing a Photocopier
For most businesses the acquisition of invaluable office equipment like a copier might be a scary investment, mostly because of the huge capital outlay and the possibility of it becoming obsolete. Leasing a copier is the smart option with an abundance of good business-sense benefits:
2.Budgeting
Let’s face it, most businesses earn revenue as time goes by, so to pay as you use makes more sense. Payments made until the end of a lease arrangement remain unchanged by adjustments in interest rates; you can consequently carefully plan for payments ahead of time. And as revenue can be predicted, the cost of use can be weigh against projected profits and revenue made by the use of the photocopying machine.
3.Tax efficiency
Leasing a copier can cut your total tax bill, as the cost is tax-exempt as a business expense decreasing the total cost of leasing the office equipment. This aspect will help decide whether to lease or rent, instead of purchase. If you lease you don’t have to pay the cost of the copier immediately, and you might recover everything you pay out on a ‘by payment’ basis.
4.Technology Upgrade
Undoubtedly, a copier isn’t a business asset that increases in value: it depreciates quicker than other acquired assets. As a result, save acquisitions for business assets that don’t depreciate quickly. Copier leasing improves cash flow and creates a hedge against obsolescence, depreciation, and inflation. Most importantly, it enables you to make the most of technology enhancement at an affordable cost.
5.Multifunctional
Since the newest copier machines are multifunctional i.e. they combine all the functions of a document manager, pdf writer, printer, fax machine, and scanner, it makes more sense to upgrade all these products and facilities. This is one of the biggest advantages of leasing a copier with the newest multifunctional technology.
6.Capital
It is wiser to use business capital for appreciating business acquisitions or expansion. Leasing office equipment helps conserve valuable resources for other business opportunities.
7.Flexible Payment
You can go with the most secure lease arrangement, usually up to five years, giving you access to the copier you need, the right multifunctional technology, the needed speed, and with payments your business can manage and without the large deposits accompanying outright purchase.
8.Return on Investment
The main reason for a new copier is to boost productivity; with leasing, you’re in a position to use the cost saving and increased production to make the regular payments.
Buying Tips for a Copier Lease
Test-drive it: When choosing between copier models, be sure to ask for a demonstration of how the equipment works. Or if it’s more a case of color print quality request for copies of your own document files guaranteeing satisfaction in advance.
When not to: If you expect to make fewer than seven hundred copies monthly, you perhaps don’t need to lease a photocopier for your business. You would be better off buying a multifunctional laser printer or a smaller desktop copier.
Frequently Asked Questions
Who retains the device at the end of a copier lease?
Title to the merchandise remains with the finance provider, which means the equipment doesn’t reflect on your business’s balance sheets and so not applicable to the anticipated value depreciation over a fixed period. This obviously gives you the benefit of staying in touch with the newest technology by changing your equipment towards the end of your lease.
Can we upgrade before the photocopier lease agreement expires?
Yes. A copier Leasing facility lets businesses keep up with changes in technology as your original installation can be changed either during or at the end of your lease period.
Why should I lease a copier?
All sectors of the British economy take advantage of copier Leasing; it’s the most popular choice for businesses that need a mid-to-high volume copier just as a large multi-national businesses opt to have more control of their finances and enjoy upgrade opportunities and tax efficiency of a lease agreements over buying.
How does leasing a copier work?
A Lease is a contract between a customer and a finance company, giving the client use of the equipment on payments of rentals over a given period. When you lease equipment, you make a series of regular payments, rather than a large capital outlay.
Why lease a copier instead of purchase?
If you purchase office equipment the capital invested is tied up in depreciating assets. Leasing a copier, on the other hand, enables you to save capital for other opportunities.
Conclusion
It’s important to assess the exact needs of a business before making a decision about whether to purchase or lease business equipment and, if deciding to lease the equipment, it must be made sure that the details of the service agreement are fair and clear. Deciding to take out a lease agreement can save a business a considerable amount of money and give peace of mind in today’s uncertain financial climate, as long as a reliable and credible supplier is used.
