13 Feb Photocopier Leasing
Why leasing equipment is good for your business
Did you know that around 80% of UK companies lease their business technology? When it comes to leasing equipment in today’s business world, people often think about standard office equipment such as printers and copiers, but there are many other crucial business assets that can be leased.
When a company evaluates a “lease vs. buy” decision, there is no one correct answer; each situation is unique and there are always pros and cons. For example, your credit score could play a role in your ability to obtain a competitive loan rate, or your organization’s tax situation could be a factor in whether you should lease your office equipment rather than take out a loan or purchase it outright. It’s important to note, however, that lease payments can often be deducted as a business expense.
Below are four reasons equipment leasing is a good idea and should be a viable option for your business:
Minimal Upfront Capital Outlay
This is a major reason companies choose to lease business equipment. Unlike a long-term loan or outright purchase, a lease agreement typically requires little to no downpayment to get started.
Leasing allows your business to utilize its cash or credit line to meet other business needs and reserve cash flow to address unexpected liabilities or major initiatives that have the highest potential for ROI. Whereas purchasing equipment can require a major outlay of capital up front, leasing allows for payments to be stretched out over a longer period of time.
Protection Against Outdated Equipment
Consider the technology innovations that have come and gone in the last few years alone. Likewise, business equipment obsolescence is a real concern for organizations that want to avoid unanticipated replacement costs and stay one step ahead of their competitors.
The pace of innovation in your business environment is rapid and constant. Leasing rather than owning equipment, which can become obsolete prior to the end of its expected life, allows your business to use it during the lease term and then return it if so desired.
Leases can be structured to meet the specific needs of your business. The length or term of your lease can be adjusted to help you reach a more desirable monthly payment amount that fits into your budget. Or, if you prefer quarterly payments rather than monthly installments, that can likely be arranged, too.
Leasing provides a broad range of flexible options that are often lacking in standard loan agreements, especially when you choose to work with a localized leasing agent that is experienced in your industry, familiar with your local market and willing and able to structure lease agreements to meet your needs.
Leasing offers the advantage of being able to more accurately forecast expenses and manage budgets and cash flow because the periodic lease payment is a fixed amount over the lease term. This constant payment amount provides your business with consistency for planning purposes.
For most businesses — whether a large manufacturer or service firm that needs major equipment, or a small office that just needs a good printer — leasing is often the most economical and sensible choice versus buying equipment.
The next time your organisation considers an investment in equipment, contact the our team of experts to see whether leasing is the option that’s right for you.