Photocopiers are an integral part of any workspace. Nearly every office has to buy or lease a photocopier and nowadays is equipped with a multifunctional copy machine, one that can carry out essential operations, from printing to scanning and photocopying.
Many businesses often, when it is time to upgrade or get a new photocopier, already know what array of features the machine should be equipped with, but the question of whether to buy or lease, can be one which isn’t quite so obvious.
After following a guide to buying a photocopier, and weighing up the different factors involved in deciding what type of copier will best suite your business, it’s time to look at the pros and cons of whether to buy or lease a photocopy machine.
Advantages of Purchasing a Photocopier
When you own a copier outright, it will almost always be cheaper in the long run, compared with leasing. This is easily the most obvious advantage of buying outright, but other advantages also include:
· No paperwork – When you lease a copier, there is a longer process involved, usually requiring you to provide detailed financial information, but when you purchase new equipment, the transaction is expedient and you’ll be out the door in no time.
· Tax incentives – A newly purchased copier is tax-deductible the first year, but if you lease it, you are only able to deduct the cost of the monthly payment.
· Flexible control – When you purchase office equipment outright, you’re in compete control, and what you do with your machine is your business and yours only, without the need to stick to leasing requirements. You call the shots. Plus, you can do maintenance however you like, with whatever service works for you.
Disadvantages of Purchasing a Photocopier
Although the above advantages might look attractive, there are some drawbacks as well. These include:
· Initial expense – The initial expense of buying a new copier can be a burden for some businesses, especially small businesses. If a highly-specialized industrial photocopier is what you need, buying instead of leasing might leave you short when it comes to purchasing other office necessities.
· Maintenance costs – Photocopiers can be pricey when it is time for repair. Once the purchased printer stops working, it’s up to you to fix it. It can also become outdated, making it harder to sell second-hand.
· Lack of standardization – If you have several offices and each office purchases their equipment on needs basis, it could become hard to balance performance levels and costs across branches.
Leasing advantages
Once you know the advantages behind purchasing, it’s time to know what leasing offers:
· Low upfront costs – Some leases can offer usage of up to 3 months before the initial payment is taken;
· Rental Payments are fixed – No matter the duration of the lease. the rentals stay the same, even if the interest rates rise.
· Structured payments – Payments meet your cash flow needs. So you are the one who determines the length of the agreement.
· Leasing lets you use your funds for developing your business more effectively. This is quite welcomed, as when the business grows, the requirement for working capital grows exponentially.
· Leasing is more tax-efficient than owning assets since you can offset rentals against taxable profits.
· You could add or upgrade the equipment as per needs. This means you could always enjoy the advantages of the latest technology advances.
Leasing disadvantages
Just like with purchasing, leasing a photocopier now can seem like the obvious solution. But once again, some drawbacks are present here as well. These include:
· More expensive – You might not spend a lot of money at one time, but the monthly payments over a longer period do add up. So you will end up paying more in the long run, regardless of the agreement terms or type of copier.
· Binding contracts – If you’re not sure what type of copier your office needs, or how much it would be used, it is easy to get stuck with a lease that is either above or below the need’s expectations. If the office’s printing and copying evolve, what initially seemed sufficient might no longer fit the bill, and you might find yourself in a need to upgrade to newer technology sooner than initially expected.
· It may be difficult to lease if you are a start-up or just have a poor credit rating.
· You also must be careful of hidden agreement clauses, especially regarding insurance or yearly administration fees. Make sure to check the best overall package.
So, what option should you choose, buy or lease? Whether you are buying Canon photocopiers, Konica Minolta, Xerox, or whichever high end brand you choose… just do your due diligence and don’t be afraid to explore the real needs of your business.
BIO
Daniel Calvin is on a mission to help businesses increase productivity and do so in a way that benefits everyone in the organization. He is a specialist of Photocopiers in Sydney at Number1 Office Machines.