As we move toward the end of the year, many companies begin to take stock of their print environment and think about upgrading their printers, multifunction devices, copiers, scanners, and fax machines. Year-end purchases or leases can be advantageous from a tax perspective, and you may even be able to get a deal on models that have been released the previous year. And your print environment has a direct impact on productivity, which in turn can positively affect your bottom line results.
But spending money is a big decision and you will want to carefully examine the pros and cons — not only of which type of machine and model to consider, but also whether buying or leasing the equipment has the greater advantage for your situation.
Deciding Between Buying vs. Leasing Office Equipment
Buying vs. leasing is a big decision and each has distinct advantages and disadvantages. You will need to identify your business goals and challenges to determine which option is best for your company’s needs. In this article, we will take a close look at the pluses and minuses of each alternative to help you determine which will best fit your business strategy — and your budget.
Should I Lease Equipment?
Leasing is a good option for businesses that are new or predicted to expand in the next several years. It provides a great way for start-ups to gain access to technology without a huge capital outlay. Specifically, leasing can:
- Help you stay abreast of the current technology. At the end of the lease, you can simply upgrade to get more efficient printers without a penalty.
- Assist in clarifying budget expenditures and calculating month-to-month expenses. Each lease will have a predictable monthly payment that can help you stay on budget more easily.
- Reduce the need to make out-of-pocket cash expenditures that can impact your cash flow.
- Reduce reliance on in-house IT for maintenance and service, as most leases have that built into the price.
- Make your business more competitive by helping you gain access to better features at a lower price point.
However, leasing is not without disadvantages, such as:
- You may end up paying more for the equipment over time, depending on your lease agreement.
- If you terminate your lease before the end date, you may still be required to make the monthly payment.
Still, many businesses choose leases to gain access to predictable payments and reduce capital expenditures.
Should I Buy Equipment?
If you have been in business for awhile and your income is stable, you may prefer to forgo monthly payments and purchase your print equipment outright. On the plus side, outright purchases can:
- Simplify the process of getting your equipment — just purchase and have it delivered.
- Give you the advantage of maintaining your equipment according to your own schedule.
- Allow you to deduct the full amount of the purchase price in the first year, which may be an advantage at tax time.
However, there are several disadvantages to purchasing.
- If your business outgrows your current equipment, you cannot upgrade without making another purchase.
- A purchase may tie up money that you may need for other business-related activities.
Carefully considering all of these possibilities can make it easier for you to make a smarter decision when it comes to acquiring your next printer or multifunction device.
Doing Better Business Has the Leading-Edge Equipment You Need
We understand how difficult it can be to choose office equipment. With so many makes and models on offer, finding the right one — and choosing how best to acquire it — can be a daunting task. At Doing Better Business, we simplify the process by choosing to work with only the leading names in print and imaging — Ricoh, HP, Sharp, and Fujitsu.
We have vetted each brand and developed a close partnership that allows us to provide you with only the most innovative technology and highest quality equipment, so that your investment will provide the greatest returns possible in terms of efficiency, productivity, and cost-effectiveness.
Get access to the most cutting-edge office equipment available. Contact a representative from Doing Better Business and discover how our suite of printers and multifunction devices can transform your business.