The process of acquiring new office equipment can leave any business owner perplexed: should you lease or buy? There’s no single right answer to this common conundrum—it depends on your company’s technology and financial needs. Luckily, we’ve set up this convenient guide to help with your next imaging technology decision. Read on to learn some of the pros and cons of leasing and buying.
Benefits of Buying
If you (or your office manager) are organized to a fault, buying may be best. You get to call all the shots for your equipment, choosing from a nearly infinite array of options and making your own decisions and arranging your own repairs. Buying equipment is typically less costly than leasing in the long run, and because you own the equipment, you can sell it at any time.
Technology purchases can eat up a substantial amount of capital. Your cash or credit will be tied up in the machine instead of being put to strategic use. Without a lease you may find it difficult to budget the capital needed to refresh your technology when needed. You may end up with outdated technology before your investment is paid off, and disposal of office equipment at the end of its life is your burden with its own hassles.
Liberation through Leasing
The flexibility of leasing often makes it the best option for most small- to medium-sized businesses (SMBs). You don’t need to save up for a hefty purchase or down payment, leaving your cash free and flexible for value-adding work. Your lease payments are a budgeted investment and a predictable monthly expense. Leasing makes it possible for your company to stay nimble, upgrading and adjusting as your business’s technology and needs change. You will get a new system every 36, 48, or 60 months, ensuring you always have current technology and no periods of dissatisfaction. Leasing will also generally get you better technology than you could not afford to buy outright. In addition, lease costs can be deducted from your business’ annual taxes as an operating expense.
In any lease, you’re signing a contract and will have to work within the terms and limitations of your lease provider, choosing from available equipment options. The main drawback in leasing is that you may pay a small amount more over time when you include interest and fees.
Buying and leasing office equipment each have their pluses and minuses. Whether you want to take the plunge and buy your own equipment, or if you’ve decided that leasing is your smartest option, call Affordable Business Systems today. We’ll help you get the best value for your company.