Financing your office technology. Should you buy or lease equipment?

The primary reason why most businesses lease their copiers is to avoid the significant capital outlay required to purchase copiers and printers for the entire office.

True, many leases charge on a per-copy basis and may include monthly copying minimums but other leases allow you to walk away from a massive purchase, increasing your financial flexibility when you can not afford ongoing monthly payments.

There are many other reasons why you should consider leasing office equipment instead of taking a loan and buying copiers and printers:

•    Faster, easier and with less paper work. When leasing office equipment, you have to complete only one form. A bank loan on the other hand, requires many forms, and then tax returns and hundreds of other documents.

•    When you lease, you’ll know in less than 2-4 hours whether you are qualified, whereas with a bank loan, the decision can take a few weeks.

•    A lease can provide you with 100% financing. A bank loan generally covers only 20-30% of your total cost. Additionally, a lease calls for a 0 – 2 months down-payment, while a bank loan typically requires 50-70% of your total project cost.

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•    Another benefit for leases is their fixed interest rates and fixed payments plans. Bank loans usually have adjustable rates and with leases, financial statements are not obligatory up to 0,000, while financial statements are required for bank loans on nearly all transactions in excess of ,000. Additionally, they tend to require yearly updates to maintain the loan.

•    Sales tax is not required to be reflected on your balance sheet with a lease. When you take a loan, it is recorded on your balance sheet as a debt. Loans have hidden requirements like compensation balances, other bank charges and loan covenants – leases have no such requirements and no lease termination costs.

•    There are other benefits to leasing too – such as tax benefits. Leases are usually 100% deductible over the term of the lease, while loans are depreciated over the IRS’s useful life of the equipment. Additionally, leases free up your cash, allowing you the means to further invest in your business. Loans, on the other hand, restrict your funds, possibly preventing investment opportunities which may present themselves.

•    Technology changes quickly, and sometime you buy the best and latest product, only to discover that a better one was released one a week later. So, another benefit in leasing is that some leases include provisions to trade up to a newer model, allowing you to upgrade without buying anew.

One of the companies that offer leasing is World Trade Office Solutions. At www.worldtradecopiers.com you can find answers to all of your printing needs including document management, mail room solutions, IT consulting, and much much more. For every phase of the document life cycle – from input to archive – World Trade Office Solutions offers best-in-class products and services to enhance efficiency. At www.worldtradecopiers.com you can find answers to all of your printing needs including document management, mail room solutions, IT consulting, and much more.