Every business owner must make multiple important decisions daily. One of the most important calls comes down to two simple options – buy or lease?
No matter the size of a company or the industry where it’s based, it’s crucial to have the right equipment. This goes for specialized machinery as well as common office hardware like printers, scanners, and copiers.
Both buying and leasing equipment represent costs – and each one has it’s share of benefits and drawbacks. Here’s a detailed assessment of these options compared, so business owners can determine which option is right for their needs.
Pros and Cons of Leasing Office Equipment
The office equipment lease is a document that exists in countless companies around the world. Why do so many operations swear that this option is better for (temporarily) sourcing the equipment they need?
Leasing is Affordable, Flexible, and Easy
At least for the initial expense, leasing equipment is the superior option. This makes it a major advantage for smaller companies, companies with less working capital, or companies that simply want to minimize their equipment spend in the short-term.
Lease costs are often tax deductible, adding to the affordability. The terms can also be flexible depending on the provider, making it possible for companies of all types and owners of all credit scores to get a great piece of equipment and a great deal.
Leases are also ideal for equipment like office hardware that can become outdated or obsolete fast. Providers of such equipment usually understand this, and typically provide affordable update options where the lease can be easily transferred.
What’s the Downside of Leasing Equipment?
The downside of leasing someone else’s equipment is just that – it’s someone else’s. Lessees have to manage and maintain the device on the owner’s terms, limiting what they can do with it. Also, even if a company stops using the equipment before the lease expires, they’re still required to make all of the payments.
Pros and Cons of Buying Office Equipment
Many business owners say there’s nothing like owning your own equipment. In a world where lease options are plentiful, what makes some business owners willing to buy their equipment outright?
Buying Offers Efficiency, Freedom, and Control
While leasing is affordable in the short-term because of a low initial expense, buying can be financially efficient if a company plans to use the equipment for a long time. Industry-specific machines that are rarely updated are perfect examples of equipment that can be more efficient to buy rather than lease. Not only are tax incentives available for purchases, but depreciation may be able to be deducted.
When a company owns a piece of equipment, they don’t have to worry about consulting a lease holder on how to use it. Take a multifunction printer for example. When a company owns their device, they can choose who services it or what supplies to use – so long as the warranty and insurance doesn’t specify otherwise.
Though a business owner may not always be able to upgrade their equipment the way a lessee could, they have the control they need to sell the device or trade it in if they choose. This sometimes offers more freedom in terms of what they can get out of the old device or what they can get in its place.
What’s the Downside of Buying Equipment?
Not only does buying equipment require more money upfront, but the buyer is stuck with the device. Even if it works properly, it could become obsolete or unnecessary, leaving the company itself responsible for selling, trading, or discarding it.
Why Needs Can Change as a Business Grows
The buy or lease debate is built on a singular question – which option will fuel business success and business growth most efficiently?
As demonstrated above, the decision can often come down to the type of equipment or the type of company. If the equipment may need updated quickly or the company is only trying it out briefly, the lease option could be superior.
The Decision to Buy or Lease Impacts a Company’s Future
Equipment isn’t just a tool to be used. When selected properly, it’s the foundation of business growth. The right office hardware and workplace machinery can empower a team to reach their full potential – and the right terms make the process better for everyone.
When you’re looking for office equipment like multifunction printers and other similar devices, contact Doing Better Business. We provide flexible options that make it easy for any company from any field to find the right fit – contact us today.