Many companies who lease copiers are not even sure why they are leasing. It is just how things have always been done. There are some actual reasons to lease a copier. Here are some of the most common reasons you’d want to consider leasing your next copier (and some reasons not to lease a copier)
Valid Reasons for Leasing a Copier:
- You do not have capital you want to outlay right now. Buying outright costs money, as do most traditional loans or lines of credit. The bank will at least require that you pay something down. Leases generally do have a payment up front, but that payment is applied as part of the payment stream for the lease.
- The equipment being leased is the collateral, so no confusing schedules to deal with.
- Using Section 179, the business owner may be able to do a 100% write off for the expense
- Leased equipment, as an operational expense does not go on the liabilities side of the ledger when doing your balance sheet
- If the business is a corp and the company qualifies, the equipment does not go on the business owner’s credit
Invalid Reasons for Leasing a Copier:
- Thinking that you have to because that is how the service plan works. They don’t have to
- Thinking you have to because that’s how all the copier companies quote it
- Thinking that leasing a copier allows for a cheaper upgrade during the contract. It doesn’t.