These days our business world is full of options. Full-time or contract? Sales or marketing? Two- or three-ply in the corporate washrooms?
While the benefits of single-, double- or triple-ply are easy to fathom, knowing whether it is smarter to purchase or lease your new Multi-Function Printer (MFP) can be a toilsome decision. Which will get you the technology you need now to empower your users? Which one will be cheaper in the long run all things considered? Will it affect your service contracts?
There are plenty of elements to consider when deciding whether leasing or purchasing your new equipment is right for you. For example, will being able to write-off purchased equipment benefit your business? Will purchasing negatively impact your current cash flow?
Each side of the lease/purchase coin has its benefits, so consider the following points when deciding whether to lease or purchase your new MFP.
When considering leasing equipment you should consider things like how long you will require the equipment for (and therefore how long the lease will be), is there a buy-out option at the end of the lease, what type of equipment guarantees are there etc. Be sure to consider how the following points affect your company's objectives:
- Cash Flow: leasing has significantly smaller upfront costs as the sticker price is deferred over the long term. This can free up company cash to invest in other projects. Not only is the upfront cost mitigated, you also can control your cash flow by knowing exactly how much you will need to reserve for lease payments.
- Flexibility: Leasing agreements often come with flexible payment plans that allow you to customize your equipment payment schedule. In addition, leasing office equipment can empower you with upgrades and trade-in opportunities that upfront purchases often can't offer.
- Value: When your lease ends the value of the equipment may by higher than that of outright-purchased machines—offering you residual value over time.
It is best to think long-term before you commit to a lease, and discuss renewal options before you sign.
When contemplating purchasing your equipment outright you need to consider issues of scalability, cost and value.
- Lower Upfront Costs: Purchasing your MFP(s) outright is generally cheaper in the long run as it locks in your costs for life and avoids you paying additional costs for things like penalties and interest.
- Value: Owning assets may be a plus for your company in terms of liquidity. Purchasing your MFP(s) also gives you a write-off that could help your company with this year's taxes.
Deciding whether to lease or purchase your MFP and other office equipment is an important—and personal—decision that must be carefully weighed. Whether your current circumstances dictate that leasing or purchasing is right for you in the long term, be sure to also carefully weigh what type of service contract(s) you'll be needing alongside the MFP.
If you've made the decision to purchase or lease equipment in the past, we'd love to hear how it turned out for you—we encourage you to share your experiences with us.
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