We see that many businesses get copier leases that probably should not have gotten a lease, but they didn’t have the time to fully investigate the benefits and drawbacks of a copier lease.
Copier Leasing Benefits:
- If you chat with your accountant, you can see if the Section 179 benefits apply to your company
- If you don’t have a bunch of cash flow, the copier can be financed (leased) and keep your operating capital at a higher level.
- Preserve credit lines, if you are getting close to maxing out your line of credit, it is good to keep your other lines open for emergencies.
- Fixed payments – Rather than one huge outlay, make fixed payments over time
- Avoid Old Tech – If you lease a copier, then you have a schedule when the copier has to be replaced, thus avoiding obsolescence.
- Conserve capital – a bank will often require a large down payment if you need a loan for capital equipment. A lease, on the other hand allows you to make payments.
- Buy at the end if you like it – Especially with $1 Out leases, you get to keep the equipment at the end for just $1.
Disadvantages to Copier Leasing:
- Initiation fees and paperwork costs, generally in the $150 to $200 range
- Having to package and send copier back to leasing company – additional cost and effort
- Another bill for accounting to have to deal with
- The danger of being in a lease with auto rollovers or upgrade charges that cost extra