Despite the world going largely digital, office equipment still plays a vital role in the modern office environment. People still heavily rely on paper, so businesses need to have dependable machines to facilitate their workflows.
One big question that many companies face is whether they should buy or lease their next business copier. There are pros and cons to each solution and, before making a decision, businesses should weigh each option to help them reach the best solution that makes sense for them.
What are The Benefits of Buying a Business Copier?
Leasing comes with many advantages, but for some businesses, it makes more sense to purchase a new copier. This is especially true for companies that can predict their needs for the next five to seven years and can adequately project their usage requirements. Primary advantages that come with copier ownership include:
- No contracts: Once a copier is purchased, the company owns the equipment outright with no further obligations to the vendor.
- Less expensive: In most cases, it’s less expensive for companies to buy their own printers or copiers. Additionally, they can also save money on interest payments if paying by cash.
- Return on investment: Office equipment does depreciate, but copiers tend to have a long lifespan when properly taken care of. A business can recoup some of the initial upfront costs when the copier is no longer needed, or when it comes time to upgrade to a newer model.
- Flexible maintenance: Companies owning their equipment can take charge of maintenance and repairs when they need them if they have a qualified employee who can do so. They also have the flexibility to choose whether to enter a maintenance contract or pay on demand for services with any vendor they choose.
It’s important to remember office equipment, such as copiers, are large purchases that require a significant capital outlay of funds. For companies with a healthy capital expense budget, investing in their own copy machines often makes more sense because of the long-term savings that can be realized.
What are The Benefits of Leasing a Business Copier?
While buying a copier makes sense for many businesses, for others, it’s not the best investment. This is especially true for companies that can’t predict their long-term direction or can only project their needs for the next one-to-five years. Companies with smaller budgets or technical staff also often find it’s better to lease office equipment because they don’t need to worry about the details associated with ownership.
- Saves financial resources: By not putting a large amount of cash into buying equipment, upfront costs are very low, and a company can reallocate its bank lines of credit towards other business needs.
- One small monthly payment: Budgeting for a leased business copier is more feasible for some companies because they know what their expense will be each month, making it easier to plan their budgets.
- Gain access to updated tech: Leasing allows companies that wouldn’t be able to access the latest tech the ability to acquire newer equipment at an affordable price as updated models are manufactured.
- Maintenance and repairs are included: Vendors that lease equipment include service and repairs as a part of the lease package.
- Tax advantages: Lease payments are considered to be pre-tax business expenses, which means every payment made can be deducted.
Many businesses find the low upfront costs associated with leased copiers to be a significant benefit. Many contracts can be customized to fit a company’s needs.
How to Decide Which Option is Best for Your Business?
Deciding whether you should buy or lease a business copier doesn’t come with a one-size-fits-all answer. It’s important to ask yourself the following questions to help you determine which option is most feasible and meets your business needs.
- Will a large cash purchase create a big dent in your budget and prevent the company from pursuing other objectives and goals you want to achieve? Or can you afford to make a big purchase if this ability allows you to bring down overall costs and save money in the long run?
- How many copy machines are needed, and how many people will be using them?
- Does your business need up-to-date equipment to produce the quantity and quality of prints you need for success, or would a basic copier meet your requirements?
- Do your business needs require “all the bells and whistles” in a copier, but you’re finding it hard to justify a more expensive purchase?
- Can your business operate more efficiently if you have a predictable monthly payment?
- Is there room in the budget for unexpected breakdowns and repairs?
- If your copier breaks down, will your staff manage repairs, maintenance, and patches?
- What kind of lease comes with the equipment? For instance, is it a capital lease (rent to own) or an operating lease?
- Does the leasing company insure the equipment, or will insurance be an expense that your business will need to absorb?
- How long are the lease terms, and is there an option to allow any flexibility to make changes as your business’s needs evolve?
Before making your decision to purchase or lease, consider all of the pros and cons so you can best determine which option would meet both your practical needs and feasibly fit within your budget.
To learn more information about buying or leasing a business copier, contact Golden Gate Office Solutions today to learn more about our products. We’ll help you find the right solution for your San Francisco-based company.