A new small business faces various challenges, including the need to operate on a tight budget. At this stage, buying office equipment like a printer or copier outright may not be financially practical. Alternatively, leasing one or both could be a viable solution. If you're thinking about leasing office equipment in Chester County, PA for your business, this guide can offer helpful insights.
We will examine the advantages and disadvantages to assist you in making a well-informed decision. Eventually, you will afford your printer and copier. For the time being, let’s explore leasing options in more detail if necessary.
Know Your Options: Lease vs Buy Printers
The decision to purchase or lease a printing system ultimately hinges on affordability and your accounting approach to your business. Do you consider this equipment a capital expenditure with a depreciation schedule? Or do you view it as more of an operational expense, simply a cost of doing business? Understanding your options and the current financial situation is essential. Let’s examine what each option entails:
Buying a printer or copier: It requires an upfront purchase. Once you buy it, you own it. Aside from use, you are responsible for maintaining it during its lifespan. When the time comes, you will eventually need to replace it.
Leasing a printer or copier: This option is ideal for cash-strapped businesses or those with ample funds but prefer to allocate them to other priorities rather than frequently incurring expenses on replacements, repairs, and so on. They require monthly payments on a fixed term. At a minimum, the term will start at 36 months, with the estimated highest timeframe at 60 months. The lease agreement includes maintenance and upgrades.
Both of these options can be the right choice for your business, but remember, your choice will depend on your specific technological needs and long-term objectives.
Small Business Printer Solutions No Matter Your Financial Situation
A small business starting with a limited budget faces hurdles. However, they can breathe a sigh of relief knowing they have small business printer solutions that fit their financial situation. When the time comes to grow, it is easy to purchase a printer outright. Some businesses even opt for regular leasing on small business printer solutions because it is more convenient for them.
What Are The Benefits Of Leasing For Small Businesses
If leasing a copier in Chester County, PA is the best option, you’ll enjoy these benefits. The same applies if you choose to lease a printer as part of your business plans. Either way, here are the typical benefits you can enjoy:
Little to no upfront costs
Startups recognize that cash flow is essential. This means that minimizing upfront costs takes precedence when leasing office supplies like printers or copiers. Avoiding initial investments is better suited for cash-strapped businesses, even if it impacts long-term plans. Leasing a printer or copier is an appealing option for those who choose to use operational capital to focus on payroll, marketing, and inventory.
A leasing option may sometimes entail no initial costs. This varies by supplier. Think about whether you are comfortable starting with minimal or no upfront payment.
Avoid obsolescence
The rate of technological change is exponential from year to year. Leasing this type of office technology allows you to remain current with today’s technology, ensuring compatibility between business-critical systems and workflows. Leasing also protects against tired and overused equipment, increasing system uptime, and maximizing the reliability of the equipment when you need it most.
Contrasting this with outright purchasing, you won’t have protection from obsolescence. Meaning you won’t have access to any software or firmware updates that would support your copier or printer. You won’t have to worry about this in the slightest with leasing because you’ll always have a brand new, up-to-date business solution when the time comes to upgrade. Yes, you can easily trade up a printer or copier for a new one whenever the time comes for it.
Bundled maintenance and support
One of the greatest benefits of leasing a copier near Coatesville, PA, is that it usually comes with added perks like professional support, repairs, and maintenance. This is especially helpful for you, as your main objective is to keep cash flow stable for other essential expenses, such as payroll. By not incurring extra costs for maintenance and support, you achieve both financial advantages and peace of mind. This peace of mind refers to having experts address any issues that arise, instead of you spending time troubleshooting them, which can often lead to stress.
Flexible lease terms
The lease terms for a copier or printer will vary based on factors such as long-term affordability. You can select a term that aligns with your needs and preferences. The monthly payment may also depend on the length of the lease, with shorter leases typically requiring a higher payment and longer terms generally being less expensive.
A hedge against inflation
The not-so-great news is that inflation continues to be a challenge in today’s economy. On the bright side, for those leasing printer and copier solutions in Chester County, PA, their rates will remain fixed regardless of inflation’s trajectory. This means you are financing today’s equipment with the future earnings of your business.
An option to buy may be available
If you are satisfied with the printer or copier solutions for your business, you have the option to purchase it outright if you wish. You just need to pay off the remaining lease balance, and it becomes yours. However, this purchase option will only become available after a certain period or if there is a specific remaining balance.
Doesn’t tie up existing credit lines
If your business has a credit line, leasing will not interfere with it. You can utilize credit for your key business priorities while leasing helps you maintain your capital reserves.
The Benefits of Buying a Printer or Copier
Better cost savings
The cost savings present a significant advantage of purchasing a printer or copier outright. Once you pay it off, you own it for as long as it functions. There are no more monthly payments or interest to pay on the lease. If maintained regularly, the equipment should remain reliable for many years. The savings will accumulate over time.
Complete ownership
This benefit is self-explanatory. Let’s not forget that since you own it, you can customize it to your liking. You also have the option to resell it after it receives the necessary upgrades. Otherwise, you can use it for any purpose until it's time to replace it. Even better, you won’t have to worry about early termination fees, contract restrictions, or returning the machine if you cannot make the monthly payments.
Potential tax benefits
Both buying and leasing a printer or copier have one thing in common: they provide tax incentives. However, the similarities end there when you take a closer look at the deductions available. If you own the machine, the upfront deductions can be even greater, according to IRS Section 179. It is recommended that you consult with a tax professional to see which tax benefits you qualify for. If you have any questions or concerns that may arise while deciding between buying and leasing, please get in contact with them. The sooner you do, the more prepared you will be when it comes time to file.
Challenges of Buying or Leasing for Small Businesses
There are common challenges associated with purchasing printers or copiers. What exactly could you face? Here is a list of the following challenges:
A higher upfront investment: The upfront cost can be significant, particularly for commercial-grade printers and copiers. Additionally, the stated price often excludes service contracts, upgrades, or necessary supplies. As a result, many businesses find printer leasing to be a worthwhile option. However, it is advisable to consider a service contract, depending on the vendor you select.
Maintenance and repair costs: Owning the equipment means that you are responsible for its maintenance and repair. Suppose the machine malfunctions, resulting in downtime, productivity loss, and out-of-pocket expenses. Without in-house IT support, things become even more difficult. Score one more point for the leasing option, as you receive support and maintenance at no additional cost. You can even get repairs and maintenance done on the same day.
However, leasing presents a significant challenge. Most lease agreements are non-cancelable, meaning you’re committed for the entire duration. Therefore, it’s crucial to thoroughly review the agreement, select the printer or copier that best fits your needs, and ensure you qualify for any needed add-ons or upgrades. This diligence will help minimize buyer’s remorse and protect you from unfavorable lease terms.
Is Leasing Or Buying Best For Your Business? You Decide
While buying a printer or copier has its advantages, leasing is a surprising option that offers additional benefits. This is because it can be cost-effective, whether you're on a budget or have extra money to spend. Avoiding additional costs from repairs and maintenance may be wise, especially when faced with priorities that need further investment. If you have ample funds, you can still choose to purchase printers and copiers outright. It’s up to you to prioritize your financial needs and long-term business objectives.