Here are a few of the main advantages and disadvantages of leasing office equipment to help businesses decide what acquisition method is best for them.
Advantages
The most significant advantage of leasing is that there is not a significant capital investment up front to purchase the machine. Paying on monthly terms will reduce upfront costs and could make the acquisition more manageable for a smaller company with less considerable resources.With leasing, the business is often able to get a higher quality printer than it would in a purchase because it is more affordable upfront. Another advantage is that often, a lease option will come with a maintenance and repair plan. With breakdowns reduced and covered by professionals, this can free up considerable time and save money depending on the reliability of the machine.
Disadvantages
The obvious disadvantage is that the company will not own the equipment. This creates a few disadvantages. The first, if the machines are used for a long period of time, the company could spend more money than if they purchased the machine straight up. The other is that the company won’t be able to list the equipment as an asset or depreciate it on their taxes.While there are fitting situations to either lease or own, sometimes it can be difficult to decide which will be the best for the organization. Here is where you can test it out. If the decision is difficult, lease the machine at the beginning, if the organization is pleased with the machine and can handle the upfront cost, then purchase the equipment outright. This eliminates the entire ‘debate’ period and helps to move the decision forward. If you have any other questions about leasing or buying office equipment, contact us today.
This article was originally posted on West Virginia Copiers website Apple Valley Office Products.
