Lease the right Photocopier.
Leasing is one of the best ways to save your hard earned money without compromising on the functionalities of the new equipment. Same is true for a photocopier as well. Leasing an essential equipment like a photocopier for your office is an important decision and should undergo some research work.
So here we are, to guide you on some of the important aspects that you should consider before signing a lease contract.
- Recognize your requirements.
This simply means that first and the foremost thing that you need to consider is analysing your business requirements. You must understand as to what are your copying/printing needs. This apprehension will not only help in deciding the features required to get your work done but also evaluate your current and expected print needs. Broadly users are categorised into three categories as Home users, Small offices and Large concerns.
Home users like include students or families or individuals who have printing requirements for home assignments or photos only. For this category, a colour inkjet printer can easily accommodate their requirements.
For small offices, where quality output is important, can choose from a laser printer or a colour inkjet printer for economic running costs.
Whereas large business concerns have heavier printing and copying needs and hence need a multi-function photocopier. To avoid any hindrance in the workflow big businesses should opt for laser printers.
- How to pick the right buy?
It’s very easy these days to find anything online that you need at the most competitive price. But sometimes just for the sake of catching the product at cheap rates, users don’t go into details which turn out to be a disadvantage later. So it’s always good to ask questions regarding:-
a) if there are any hidden costs related?
b) if the company (in question) has good reviews?
c) if they provide satisfactory after sales?
d) if they provide quick solution without any delay in response time?
e) if they offer buyout or upgrade or end the lease with the completion of lease time?
- Understanding your lease agreement.
Before entering into a lease agreement, you should always know and understand all the terms mentioned in the contract like:-
a) Your payment terms. Be well aware of the amount and the interval of your payment. If the payment gets delayed or in case you want to exit the lease contract, what penalties shall be imposed on you?
b) Damages Covered. Try to find whether your contract covers any accidental damage? What type of and what amount of repairs does your agreement cover?
c) Extra hidden costs. Make sure that the cheaper looking product does not have extra hidden costs. These can be in the form of costs for ‘add-ons’ or slow or unresponsive services causing a disrupt in your work environment.
Considering the above mentioned points before leasing a printer/copier you can definitely benefit from the leasing arrangement. Saving money not only by leasing that purchasing outright, you can acquire a printer like a pro in no time. For any other assistance, Milkman Toner Company is always happy to hear it from you. We understand that each individual has different priorities and we can refer the best advice that helps you as an individual or your business to work with optimum efficiency.
Every business organisation has a keenness to save the money by cutting down on unnecessary or avoidable costs. Where buying a new office equipment like a photocopier is a big and important decision affecting the budget and the cost of operation of the company.
The best alternative to cut down cost of purchasing a photocopier is to acquire it through a lease agreement. Let’s compare the following basis of difference:
- Initial Cost. The decision of purchasing equipment leads to a huge initial capital requirement for utilizing the services of the same. Whereas when you decide to make a lease agreement for the same equipment, you are saved from a big amount of capital being stocked up which otherwise could be used for expansion purposes of your business.
- Obsolescence cost. When you purchase a photocopier, you always have a fear of the technology being outdated or turning obsolete within a period of 2-3 years after purchase. With the advancement in technology every off and then, this adds up as a burden to the business in form of cost of obsolete machinery. On the other hand if you choose lease agreement this fear and cost of obsolescence will not hit your business operations as you can utilize the latest technology for as long you want and can easily shift to updated versions during the lease agreement only.
- Individual cost. Buying a photocopier alone will prove to be a futile decision when you will realise that you could have leased a multifunctional photocopier rendering the services of scanner, photocopier, Printer as well as a fax. Leasing multifunctional equipment is far more productive than buying single functional machinery.
- Tax costs. Purchasing equipment can offer you to get depreciation of just up to 40% of the cost of equipment in initial year and 25% in succeeding years. But when we talk of deduction of amount paid as leasing installment, full amount is deductible as a business expense thereby lowering the overall cost of leasing.
- Arrangement costs. Outright purchase of photocopier puts a lot of burden on the business and even arranging the amount for purchase either by forgoing another business expansion or in form of loan from the bank leads to high arrangement costs. But in case of leasing there is negligible cost of arranging the funds as you ink the agreement as per your own convenience for a stipulated period of time that is most suitable to you.
- Maintenance & Repairs Cost. The cost of maintenance and repairs in case of purchasing have to be borne by the purchaser but in case of lease these cost are already covered and are not to be borne by the lessee.
- Supplies cost. Same as maintenance and repairs cost, the cost of supplies like toner and ink are to be borne by the purchaser but these costs are not to be incurred by the lessee of his own.
Leasing is helping out companies to cut down the costs of investment, obsolescence and maintenance costs. Not only cutting down costs, leasing is far more affordable, convenient and tax efficient way to utilize the latest technology with an option to easily shift to the upgraded model.
When it comes to buying an office printer, the decision needs to be thought about by comparing total cost over flexibility. Many businesses consider leasing as an efficient option to acquire office equipment rather than putting a huge capital blocked for outright purchase. Leasing is a tax-efficient form of finance, which lets you avoid the initial capital outlay and enable cost effective access to latest technology that too at the right time. With a continuous development and advent of new technology in office equipment, leasing is a better option to upgrade office devices rather than purchasing it outright.
We bring to you, some of the advantages of leasing a printer or photocopier:
- Buying office equipment like a photocopier or printer with the risk of the device becoming obsolete in five years seems to be a daunting investment. So it is wiser to use the capital in expansions and other important acquisitions. Leasing a printer/photocopier will not only fulfil the need but also preserve your existing liquidity but also optimise your commercial credit sources.
- Flexible Payment. With a leasing arrangement you can make most comfortable and suitable payment plan up to agreed number of years. It gives you immediate access to the photocopier or printer that is required in your office at required speed and right technology and that too without paying a large amount at the time of purchasing the same.
- Latest Technology. A photocopier or printer is accepted to be an asset that depreciates faster than most of other purchased assets. So, it is a wiser decision to invest in assets that either appreciate or depreciate lesser than a printer/photocopier. For such an office equipment, leasing is the best option available that relieves you from the burden of quick obsolescence and also gives you an opportunity to move on to the latest technology improvements without much hitch.
- For start-ups or many other businesses, it is advantageous to pay as they use and as they earn. In spite of paying a lump sum amount at time of purchase, leasing offers you easy, equated and accurate amount and number of instalments without any change in the rate of interest. So, it turns out to be sensible decision to pay as you use the equipment.
- Tax Efficiency. Leasing offers you the same benefits in terms of tax as you have for purchasing equipment. The cost of leasing equipment is deductible as a business expense thereby lowering the net cost of leasing it. Another benefit of leasing is that you can reclaim the whole amount of payout (leasing instalments) on the agreed payment intervals rather than purchasing where you can claim only a fixed percentage of the total amount each year.
- Return on Investment (ROI). Acquiring new equipment on leasing arrangement gives you increased productivity and also avails cost saving and hence gives you raised ROI.
We hope the above stated points would have convinced you strongly for considering leasing as the next best option. We at Milkman are supported by North Shore Leasing LLC to offer greater flexibility in leasing options to our customers. We would be happy to help you with utmost trained and qualified assistance on any issues regarding printers, photocopiers or multifunction printers. Please feel free to call us.