Copiers and printers are a necessity for all firms. However, purchasing office equipment could be a significant expense in capital particularly for businesses which require a large number that includes multi-function printers. Even for a small-sized business owner just beginning their journey, buying just one machine could be a significant portion in working capital.
The most cost-effective method to handle the office equipment requirements is through renting or leasing. For the majority of businesses, the advantages more than the cost of purchasing equipment. In particular, it helps businesses to be more precise in forecasting their budgets, create business credit, and even release cash flow monthly.
Although leasing and leasing agreements look like they are similar, there are some differentiating factors. What is the best way to rent vs. lease. lease equipment? Let’s look at the differences between them and also list the factors that influence the cost of leasing vs. leasing office equipment. Then, you’ll be able to decide which one is the best option for your company.
Leasing Office Equipment
In the end overall, the advantages of leasing instead of. purchasing office equipment makes it a very popular choice for a majority of businesses. Certain office equipment providers such as Gordon Flesch Company, Gordon Flesch Company, offer in-house financing that is, they do not transfer finance to a third-party. This allows for greater flexibility in lease term, superior customer service, and more competitive rates of interest, and also permits all maintenance agreements to be combined into one simple every month lease installment.
Maintenance, which is an element of leasing or renting usually includes all parts repair, labor and travel time. It also includes toner as well as preventative maintenance that helps minimize the time between printing and copier breakdowns. Simply put, you feed it paper, and the service provider will take charge of the remaining. Make sure you ask the appropriate questions when you are considering various leasing companies for office equipment to be aware of what you’re getting and the range of services they offer.
One major benefit that leasing equipment is the fact that you will have additional options after the lease period is over and includes the possibility of:
- Renew or extend the contract. If you like the machine, you may extend the lease for a further year or more at a reduced rates or upgrade to a newer equipment with new lease terms. Technology is constantly evolving businesses are constantly upgrading their equipment to remain on the cutting technological edge.
- Re-insert the equipment. The machine is returned to the service provider, and your contract with them has ended. There are no obligations to the vendor of office equipment.
- You can take ownership. You’ll be able to buy out the option to buy the equipment at an affordable price, with no penalties. If the machine is performing perfectly and don’t see having to upgrade it anytime soon then this could be an ideal alternative. You could still have the maintenance contract copying machine, or multi-function device to make sure the machine is in good shape and is operating with a high degree of reliability.
Factors That Determine Monthly Lease Pricing
A variety of factors are considered when calculating the price of leasing equipment that comes with an maintenance contract. The most significant is the kind of equipment you pick. A desktop printer will cost less than a multifunction one that is able to scan, fax collate, email, staple and much more as well as have specific maintenance requirements depending on the your usage. For instance, if your business prints 5,000 copies per month and you’re charged for it, you’ll be charged according to the amount.
Other considerations include how many devices you require; leasing printing equipment in a series will result in a lower pricing for each unit. The longer the lease will be, the less you’ll pay for your cost per month typically, with the most common lengths being 36,48 and 60 month.
In the end, leasing will cost your business less than long-term leases and will help you increase your equity. Like every lease agreement, breaking an contract earlier could be a violation and a fine. If it’s close to the expiration date but you’re not sure, you can typically upgrade and see the figures work for your benefit.
Renting Office Equipment
A few companies rent instead of leasing as they wish to be more flexible when their requirements change. If a company is just beginning its journey, for instance the company may be unable to estimate the equipment requirements in the next two or three years from now. If the company grows rapidly and expands, it may require a major upgrade sooner than the lease period will allow.
Certain larger, established businesses prefer working with rental companies for office equipment as they often move or consolidate equipment between departments. If they require a different type of equipment, they may terminate their rental agreement for copier and sign an entirely new machine. There’s no baggage or buyout to be carried.
Factors That Determine Monthly Rental Pricing
A lot of the costs in leasing are applicable to renting for the various types of equipment used and the frequency with which it is used. Flexibility is a major benefit but. Renting requires an annual commitment, and may be accompanied by a maintenance contract, however, the cost will usually be higher than that of the cost of a lease.
It’s crucial to note that there is no equity constructed. Thus, if a firm would like to keep the device after the expiration of its rental agreement, there is no ownership option. If the company would like to rent again and renewing the lease at a reduced price or upgrade the equipment , and sign a new agreement.
It is important to note that when leasing or renting an item for any duration, you might be eligible to claim tax deduction. To determine if leasing vs. leasing office equipment is the right choice for your business, you must conduct an analysis of the cost and determine the use of your company across departments. Also, review our informative graphic below. Also, don’t forget to examine the company that leases your property as well.
Our Gordon Flesch Company team can help to determine the financing options for equipment that is the best option for your business and offer side-by-side comparisons that illustrate the differences in cost. Contact us now to schedule a no-cost consultation.
