If you are ready to own a new copy machine for the business, there are a number of good companies to select from. Once you have decided on which copier company to go with, one of the most important decisions to make is to either buy the unit or just lease it.
Two decades ago, the ratio of lease vs. buy was around 50/50. Today, 80% of schools, medical practices, and businesses around lease copiers already. So, why is there a significant increase in the number of people that go with leasing? The primary reason is the fact that technology upgrades so fast with copiers harbouring the functions of many other devices.
Copiers are not just copiers anymore. It can already fax, scan, print, and copy. With a number of businesses aiming to go paperless, the capacity of multifunction devices has become an instrumental tool in achieving this goal.
Why should you go with the leasing trend?
Equipment is up-to-date.
Computers and other office equipment will become obsolete, eventually. By opting to lease, you are passing the financial burden of replacing an obsolete machine. After a lease term, you are actually given the freedom to lease another cheaper, faster, and newer equipment.
Monthly expenses are predictable.
With lease contracts, you are given a pre-determined monthly fee- a good way of organizing the budget in a more effective manner.
Zero upfront payment.
Numerous small businesses have struggled with their cash flows. Since leases require no down payments, you could acquire brand new equipment without having to tap the budgeted funds.
Keeping up with competitors is easy.
Leasing enables a business to acquire the best of what technology could offer- an opportunity that sometimes is unaffordable for most businesses. This, definitely, makes it easy for your organization to keep up with bigger competitors without spending even the last dollar in the available resources.
Why purchase outrightly?
The process is easier.
Purchasing office equipment is a lot easier than leasing. With a lease, paperwork is involved because leasing companies require updated, detailed financial information from clients. They will also ask where and how the leased equipment will be utilized. If no organized negotiation is executed, lease terms could be complicated to go through. When improper negotiations are carried out, a client could end up receiving unfavorable terms or paying more than what’s right.
You decide on the maintenance services.
Leased equipment requires you to take care of the equipment according to the company’s specifications. If you are purchasing the equipment, you will determine the schedule of maintenance.
While outright purchases have its own advantages, it also has downsides. For instance, the initial outlay for equipment could go “too much.” When this happens, the business will be forced to tie-up with a credit company or shed out a hefty sum. Though financing and credit lines can be used for advertising, marketing, and some other functions that can push the business up, it still involves large interest rates.
If you are purchasing, you will be stuck with an outdated machine. A growing business needs to constantly refresh its technology tools for at least every 18 months. Simply, you will be stuck with a machine unless you decide to sell, recycle, or donate it.
