Benefits of a Printer Lease
Most businesses find that large printers, either color or black and white, are necessary to fulfill their daily needs, but the price tag on those printers is hefty. When leasing, the cost is spread out over a longer period of time, leaving a much larger cash flow for other business expenses. This is especially good for new businesses, where their cash and lines of credit are limited.
When your business buys large printers, you’ll also discover that they are not as easy to install. While your desktop printer at home might be plug in, do a sample page, and then use it, larger printers require a little more. It might surprise a new business owner to discover that set up costs on a purchased printer will likely be extra. A printer lease often includes setup costs, so your business doesn’t incur additional expenses for installation.
Another business expense that you may not be aware of is the cost of repairs. With large printers there will be repair bills at one time or another. You may even find that a paper jam causes a call for technical support. Owning a printer means your business covers repair costs, while a lease agreement covers these repairs.
One of the biggest benefits to a printer lease is that if your business discovers that the printer is not enough for your needs, then it is generally easier and much less costly to arrange an upgraded machine with the leasing company than it would be to sell your printer and buy a new one.
Leasing costs may be tax deductible as operating expenses, which will please your chief financial officer.
When you originally purchased a printer, it is money out with no tax benefits.
Disadvantages to a Printer Lease
Although the benefits of a printer lease are compelling, each business must weigh the disadvantages of leasing. With a lease, you never own the printer, so you cannot count it as an asset for your company. Leasing offers financial gains, but owning has benefits too: owning the printer allows you to claim depreciation on your taxes.
A lease may cost more in the long run, as payments can exceed the cost of purchasing the printer outright.
Each company must evaluate the short-term, long-term cost benefits and other advantages of leasing printers for itself.