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To Lease or To Buy: Copier Machine Dilemma of Most Businesses

Leasing is a form of agreement between two parties- the client and the financing company. The leasing agreement consists of the duration, inclusions, and terms of payment. Below are the questions you need to ask yourself when you are planning to lease a copier. Copier Leasing Wichita is here to help you.

How do printer leases work?

Office equipment such as printers, copiers, and fax machines may be costly for businesses especially to those that are just starting. Most of the start-up businesses couldn’t afford to purchase such devices because their capital is limited. In a lease contract, the delivery and installation are shouldered by the financing company. When it comes to the payment, the client has to pay is based on the agreed date. They can pay it monthly, quarterly, or annually in the whole period of the contract. The typical duration could last between one to five years. Since leasing packages may be customized, clients may add other services to suit their needs. Meanwhile, when the agreement ended, they may renew and ask for an upgrade for higher efficiency and productivity since older models depreciate.

Should you buy or lease a copier?

The answer to this lies in the benefits it can provide to you and your company. It is also helpful if you are well aware of the needs of your company. Purchasing may sound like a good idea since it will give you the idea that you are spending less. It could be due to the number of payments you will make. The total lease price may appear to be higher than purchasing a brand new copier. On the other hand, leasing is preferred by most companies. With leasing, you get to upgrade your unit to a much more advanced and multifunctional unit without spending additional money. You can also enjoy here the tax-efficiency of leasing agreements. So, the best choice between the two is leasing one. Productivity will be maximized whenever the unit will be upgraded.

How much does a copy machine cost?

The amount of a copy machine varies from models, features, speed, printing capacity, and even color. Black and white copier desktop ranges from $500 to $2,100. Meanwhile, colored copier desktop ranges from $800 to $ 2,600. For the advanced models and multifunction units appropriate for business use, their price ranges from $2,000 to $20,000. Copier Lease Miami will surely give you the unit beneficial for your use.

How does lease buyout work?

Depending on the agreed term in the lease contract, you may or may not buy the machine you are leasing. A lease buyout usually happens at the end of the contract. The amount to be paid will be based on the copier’s residual value. It pertains to the purchase amount set at lease signing and was based on the predicted value of the unit at the end of the contract. It is also known as a buyout amount or purchase option price. Choosing the buyout option will require the client to pay some additional fees. Copier Lease Wichita will ensure you will get your penny’s worth.

Are copier leases capital leases?

A capital lease is leasing business equipment but its ownership can be reflected on the list of assets of the company. Contrary to operating lease, it is treated as a purchase for accounting purposes. It is used for long-term leases. On the other hand, operating lease or service lease is short-termed. The lessee may use the equipment but cannot have the benefits of ownership unlike in capital lease.

It is always important to bear in mind these questions to prevent yourself from getting lost. Copier Lease Wichita will always guide you.