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. A printer lease often includes setup costs, preventing additional expenses for your business.
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 pays repair costs, while a lease agreement typically covers those repairs.
A printer lease allows easier and cheaper upgrades if the printer doesn’t meet your needs, compared to buying and selling.
Leasing costs may be tax deductible as general operating expenses, which will please your chief financial officer.
When you originally purchased a printer, it is money out with no tax benefits.
Disadvantages to a Printer Lease
Although the benefits of a printer lease may seem compelling, each business must weigh the disadvantages of leasing. With a lease, you never own the printer, so you cannot count it as an asset for your company. Leasing offers financial benefits, but owning a printer allows tax deductions for depreciation, creating a trade-off.
Leasing may cost more in the long run, as total lease payments can exceed the outright purchase price of a printer.
Each company must evaluate the short-term and long-term cost benefits and advantages of leasing its printers.