Your printers and copiers are essential to your business, but what happens when something needs to be replaced? For many small and new businesses, purchasing office equipment is a bigger hit than their budgets can withstand. Leasing may be an option – but is it the right choice for your business?
If you look at just the cost of new equipment, buying is typically a less expensive than leasing. At the end of your lease period, you are left with no ownership, whereas when you buy a device, you can retain some resale value. However, there is more to the equation than just cost. Leasing allows you to make smaller monthly payments, rather than a large lump-sum payment if cash flow is tight.
When deciding on new equipment, it’s important to balance your needs with the cost of the device to maximize your return on investment. When you’re buying, you may be more price-conscious, and limit your options to “good enough” models. This may ultimately cost you more in the long run, by not allowing you to take advantage of the cost and time savings a higher-end machine may bring. Leasing equipment gives you the option to get a device with more features and manageable monthly payments.
Intended Length of Use
Technology is always changing and leasing allows you to change with it. You can upgrade your equipment every few years if your needs change. On the flipside, depending upon the terms of your lease, you may still have to continue to make payments for the lease period even if you no longer use the equipment – which can happen when businesses experience a period of growth or change.
On the other hand, although buying usually means a higher upfront purchase price, if you plan on keeping your device for the long haul, or if it retains a high resale value, you can get a lot of mileage out of your investment.
When it comes to procuring new office equipment, there is no one-size-fits-all solution. Buying is right for some businesses some of the time, as is leasing. Only by looking at your specific finances, intended use, and expected return on investment can you begin to make the decision that is best for your company at this time.