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. Another benefit to a printer lease is that most often the set up costs are covered within your lease agreement, so no extra money is flowing out of your business for this expense.
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. If you own the printer, your business will foot the cost of all repair calls, but these repairs should also be covered under your printer lease agreement.
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.
Finally, the issue that will make your chief financial officer the happiest is the fact that leasing costs may be tax deductible under general operating costs.
When you originally purchased a printer, it is money out with no tax benefits.
Disadvantages to a Printer Lease
As compelling as the benefits of a printer lease may seem, there are disadvantages to leasing, which must be weighed for each business. With a lease, you never own the printer, so it cannot be counted as an asset for your company. While there are gains to be made on your financial sheets for leases, there are some for owning too: if you own the printer, you can include the depreciation of it on your taxes, so there is a trade off either way.
With a lease, you may end up spending more money on the machine in the long run, as the payments of a lease will end up being higher than paying outright for your printer.
Adding up the short-term and long-term cost benefits and other advantages to leasing your printers is a process each company has to make for itself.