If your business needs an office copy machine, prepare to spend $200 to $500 to purchase one. This doesn’t account for the additional costs of operation, maintenance, or repair. Thankfully, you have another option.
Instead of buying, it’s time to consider a printer and copy machine lease. These six reasons will convince you that a lease is a smarter option.
1. Depreciating Asset Value
Like many other large purchases, copier machines will depreciate in value over time. If your business purchases a brand new machine, it will immediately begin to lose value. This makes it an asset that the business can never recoup its investment from.
Leasing helps you avoid this loss of value by never taking on ownership. Just like leasing a car, when the lease contract finishes, you return the equipment to the owner, and they deal with its loss in value.
2. No Maintenance Issues
Typically, leases for copying machines include a maintenance agreement. It’s to the benefit of the leasing company to ensure their devices are well maintained.
As the business leasing the copier, the included cost for repair and maintenance is more affordable than paying for these services separately.
3. Cash Flow and Credit
Purchasing a copier for your business requires a large purchase upfront. Your business may not have the cash flow for this large purchase. Leasing is an advantage in this situation because you won’t have a large output of cash upfront.
Instead, you’ll have much smaller monthly or quarterly payments. This can help a new business build credit without tying up its financial resources. It can also enable a business to secure a higher quality copier than what it could afford when purchasing.
4. Built-In Upgrades
Unlike purchasing a copier machine, your lease can have built-in upgrades. This makes it simple to ensure your business always have the latest and best technology.
Some leases require you to wait until the end of the lease, while others will let you roll your current lease into a new one for an equipment upgrade.
5. Tax Benefits
Your business can claim tax benefits from your copy machine lease. If you buy a copier, you can only deduct 40% of the purchase price for the year that you buy the copier. Then you can claim 25% of the purchase price in the following years.
When you have a lease, your lease payments are a pretax business expense. You can deduct this entire payment each time you pay it. The purchase deduction may be more the first year, but over the lifetime of the copiers, you’ll have a more significant tax benefit with the lease.
It’s Time to Lease a Printer and Copy Machine
If you find that printer and copy machine prices are too high for purchase, then it’s time to consider a lease. Your business will experience these five benefits.
A lease can allow a business to avoid asset depreciation, maintenance costs, and a large upfront purchase. It can also give the business better tax benefits, built-in upgrades, and access to better quality equipment.
Check out our other business and tech articles for more helpful guidance on making the most of your business budgets.