For large businesses, buying a high-quality printer often makes good financial sense. However, they aren’t cheap and can make up quite a large chunk of your budget if you’re an individual or smaller business.
Printer leasing is an alternative. If you’re not sure about it, we’ll explain everything below, so keep reading!
Printer Leasing Explained
Many smaller firms will consider printer leasing rather than buying one, as it can be a little more cost-effective and practical if you haven’t got a huge budget.
This is often referred to as ‘managed print services’, often giving you a package going beyond the printer itself. For example, there are a number of print leasing Melbourne options.
Types of Leasing
There are two key types of business equipment leases to consider. We’ve briefly explained both of them below.
Also known as fair market value leases, these are chosen by most businesses. In practice, you’re renting the equipment. Once the lease ends, you can buy the printer, or just continue leasing more recent models if you prefer.
These are less common. Also called $1 buyout leases, they work more like a loan on the money than renting the equipment. Hence, the equipment goes onto your balance sheet, and the monthly rate is higher. However, if you’re planning to eventually buy the printer, capital leases might be better suited to you.
We’ve already established that a printer lease can save you money, but how does it do so exactly?
First of all, you’re saving money upfront. When leasing, you aren’t paying a huge sum all at once, so you’ve got more money to go towards other areas of your business, and it can improve your cash flow.
Likewise, you might be in line for tax benefits. If you buy equipment outright, you may have to pay tax, whereas you won’t if you’re leasing. You can also classify the payments as business expenses, potentially saving you a lot of bother.
You also save on replacement costs. As time goes on, the printer can become outdated or susceptible to wear and tear. If you don’t own the printer, maintenance is not your responsibility.
Leasing vs Renting
It’s worth remembering that leasing and renting are different. The renting vs leasing explanation is simple: leasing tends to be a longer agreement, whereas rental is usually month-to-month.
Technically speaking, a lease is a contractual arrangement in which the lessee pays the lessor for use of an asset; in this case, a printer. In contrast, renting is where payment is made for the temporary use of an asset. As a lease lasts longer, both the lessee and the lessor have to abide by the agreement laid out originally.
If you’re considering printer leasing, you should hopefully feel a little clearer about what it entails now. If you think it could be right for you, consider both types of leases and weigh up your options. It’s up to you!
Would you like more advice on getting the best out of your company? If so, check out the rest of our posts in our ‘Business’ section.