If you are reading this post, you have perhaps been tasked with finding out if your firm should buy photocopiers outright, lease or rent them from business equipment suppliers. Most online providers will go on and on about how each selection can be a perfect fit for some companies, and then suitably link to their copier leasing or photocopier sales website.
This comprehensive guide cuts through the bull, to help you determine what makes the most sense for your situation.
If your firm makes less than a thousand copies monthly, it might not be logical to accord to a leasing contract for multifunction copiers or business-level copiers. By buying outright you won’t have to pay costly fees and high interest charges associated with leasing.
Though a lease to be precise is not a debt, you’re still bound to the lease’s terms, which a majority find to be the same as having a debt. The alternative would be to buy a used photocopier, if at all possible from a trustworthy dealer instead of an individual owner so it’ll have a warranty.
Benefits of Buying Photocopiers
● Less paperwork no monthly payments
● Can be written down yearly
● You can still have a fully maintained service contract
● Goes as an asset on your accounts
Disadvantages of Buying a Photocopier
● Large up-front payment required Locked into a contract
● Copier may be out of date in a few years
Most Companies opt to lease their Photocopier(s), enabling them to replace or upgrade their equipment with flexible payment terms, saving a considerable amount of money on an initial purchase.
Given that technology changes so fast when it comes to photocopiers, leasing allows businesses to budget a certain amount of money for photocopiers and later on upgrade to new devices with the latest technology. Ensure that your firm can make monthly payments without fail for the duration of the lease agreement, since photocopier leases are almost always impossible to breach, similar to any other leasing contract.
Business Equipment Leases
There are two main kinds of business equipment leases: capital leases and operating leases.
Operating leases: Most companies prefer operating leases since they provide lower monthly payments compared to capital leases. When firms obtain operating leases for photocopiers, they’re basically renting the copiers, so the asset never gets added to the their balance sheet. Generally, an operating lease makes the most sense for a business that doesn’t want the bother of owning a photocopier, and instead want to lease a newer model.
Capital leases: a capital lease is the least preferred option for most companies. When companies get capital leases for office equipment, it’s more like a loan on the cash than a rental on the copier, so the principal and interest paid goes toward the cost of the photocopier, and the photocopier goes on the lessee’s balance sheet. Generally, capital leases make the most sense for companies that want to buy and own photocopiers, but don’t want to make full purchases up front.
Advantages of Leasing a Photocopier
● Cheaper than buying or renting
● Helps businesses better manage funds, budgets and cash flows
● There is the option of purchasing the photocopier after the end of the lease
● Device is easily upgraded for a small fee
Drawbacks of Leasing a Photocopier
● Lease contracts are fairly rigid, so expect to sign a three-year contract
● It’s illegal to deliberately damage or sell the copier
Renting a photocopier is great if you’ll be using it for a short duration like office conversion of paper files to electronic files, accounting offices during tax season, and trade shows. When renting, you’ll pay for a package, which consist of a pre-determined number of copies, service, labor, parts, toner, etc. at a monthly rate lasting from one to twelve months. Renting is more expensive per month than leasing but you’re only tied into a temporary contract instead of a years long liability.
Merits of Renting a Photocopier
● Flexible contracts
● Freedom to change models
● Fast and free delivery, installation and training
● Tailored payment plans
How Does Copier Leasing Differ from Rental?
Most businesses lease their office equipment, but a small proportion prefers short-term rentals. The most common reason for businesses deciding to rent copiers instead of lease or buy is flexibility. Copier rentals can be for just one or two days, so you can access your chosen device, without consenting to a three to five years contract.
Regardless of whether you decide to lease, rent or purchase outright, the most crucial step is to spot the right device that best suits your budget and exact printing needs. Photocopier compare provides all customers with a PRINT AUDIT enabling us to monitor your office copying and printing and recommend the best copier for your business.