What is Photocopier Leasing?
When you lease photocopier equipment from a company like Your Printing Solutions, you enter into an agreement that lets you have all the benefits of brand new devices, while allowing your business to spread out the cost of the machinery over a longer term. Photocopier leasing contracts typically involve monthly or quarterly payments to the company you’re leasing the equipment from spread over a period of 12 to 60 months.
Instead of purchasing the photocopier equipment in full, you are essentially borrowing it from the company that owns it. At the end of the term, you must return the equipment back to the provider. While this means that technically your business doesn’t ever own the devices, you avoid the hefty fees that come with purchasing new up-to-date copier equipment in full.
What Are the Benefits of Photocopier Leasing For a Business?
There are many financial and operational benefits for your business that come from leasing photocopier equipment. We have gone through the various reasons why you should choose to lease photocopier equipment below:
Saves Resources
Up-to-date photocopiers are expensive. And, on top of that, they only depreciate in value once purchased. You can conserve your business’ resources and avoid the massive cost of an outright purchase by choosing to lease copier equipment instead. Copier leasing agreements can often be tailored to include the cost of supplies, repairs, and maintenance too, further reducing the expense of the devices.
Making smaller regular payments to a copier leasing company is much more financially viable for most businesses than the burden of owning an expensive depreciating asset. This is particularly useful for smaller-scale businesses, as it frees up capital to be invested in other more pressing areas of their operations.
Eases Budgeting
Choosing to lease photocopier equipment can help ease any budgeting concerns you have for your business. When you enter into a copier leasing agreement, you can determine the length of the contract and the regularity of the lease payments. Once you have arranged this with your copier leasing company, your payments remain fixed for the duration of the agreement. Payments for the equipment are also unaffected by any fluctuations in interest rates.
Counts as Tax Write-Off
Photocopier leasing can reduce your business’ tax bill, helping it to become more tax efficient. If you purchase photocopier equipment, it counts as a capital item in your accounts. This means that you’ll only be able to claim back a percentage of the total price in depreciation each year; typically, this is 40% of the device price against tax within the first year, and 25% each year thereafter.
On the other hand, if you choose to lease copier equipment, every payment is considered to be a pre-tax business expense. You will therefore be able to deduct every payment towards your copiers as a business expense. Not only does this help with budgeting, but it will also save your business a lot of money in the long run.
Reduces Maintenance and Repair Costs
Purchasing photocopier equipment commits your business to pay for regular maintenance services, and also repair services when the machinery inevitably breaks down. It can be difficult to find reputable engineers and mechanics capable of fixing these issues quickly at an affordable price.
However, when you choose to lease copier equipment, you have the option of factoring these costs into your leasing agreement. The company that you lease the equipment from will be able to provide you with reliable, qualified mechanics that keep your machinery running in top condition at all times. This will save you the additional expense and stress that goes into arranging maintenance or repair works. Also, trained customer support workers from the leasing company will be on hand to talk you through any issues you may have with your copier equipment.
Improves ROI
You can improve your business’ overall return on investment by choosing to lease photocopier equipment. As supplies, maintenance, and repair costs can all be worked into your leasing agreement, your regular outgoing costs toward the equipment are greatly reduced. In addition to the financial benefits, having brand new up-to-date copier equipment reduces downtime, improving the efficiency of your employees or operations.
Avoids Obsoletion
Photocopiers, like the majority of technological devices, are constantly evolving and being updated with the latest features. When you purchase copier equipment, you pay the full price for the latest models, from which point the equipment only depreciates and becomes outdated over time. Once your devices become obsolete due to advances in your business or the wider environment, you will need to dispose of them and purchase new equipment.
Taking out a copier leasing contract means that you’re uncommitted to the devices and can swap them out for the latest models at any time. Your copier equipment will always be up-to-date, consistently maximising your business efficiency and reducing your outgoing costs long-term.
Allows Easy Upgrades
It’s inevitable that you will need to upgrade your equipment, either to keep up with the expansion of your business or with advances in copier technology. At first, your business may only require low-volume, basic copier equipment. Then, as time goes on and your business expands, you may find that you require copier equipment with a larger capacity or more high-tech features. With a copier leasing agreement, you are able to upgrade your copier devices to suit your business needs as you see fit.
Allows Flexibility
To pull together all of the previously mentioned benefits, choosing to lease copier equipment simply offers far more flexibility than the commitment of purchasing it. You will be able to arrange every aspect of your leasing agreement with the leasing company, from the payment plan that goes towards the actual devices, to extras like supplies and maintenance and repair costs. Your leasing agreement can be fully tailored to meet your individual business needs and budgeting constraints, giving you peace of mind along with the most up-to-date, high-spec copier equipment.