The pros and cons of buying leasing equipment

Leasing is seen as a great way to breakdown an initially large payment. Most large businesses in the UK opt to lease their equipment instead of purchasing. Upfront costs are lower and this can be attractive to businesses, but it is important that you carefully budget for leasing payments, as failure to pay could leave a business more crippled, than if they bought a photocopier in full.

Understanding when it best suits to lease is critical and not always easy to do. This article intends to highlight some of the pros and cons of leasing a photocopier and aims to provide information to assist you in making a better-informed choice, about whether leasing a photocopier is right for your business.

Pros

Lower initial costs – leasing a photocopier will initially be considerably less expensive than buying a photocopier outright. This can be helpful for smaller businesses who have a low credit limit. Some suppliers may even allow a business to trial a photocopier before they fully commit.

Fixed payments – When leasing a photocopier, the supplier will most likely offer a fixed payment plan for the duration of the lease. This can be beneficial as your payment rate during your contract will not be affected by inflation, allowing you to budget accurately for the duration of the contract.

Track finances – Leasing a photocopier can be helpful for a business to keep a track of their finances. Since the lease payments are at regular intervals and for the same cost each time, it will be easier for a business to prepare for these costs within their budget.

Upgrade with ease One of the main downsides of buying a photocopier is figuring out what to do with your own photocopier once it becomes obsolete. However, this is not an issue when leasing. Leasing negates the need for a business to sell their old photocopier. At the end of the lease, the business may decide to continue using the same photocopier, they may downgrade to a cheaper model, or the supplier will offer an upgraded version. It is important to discuss your best options with a photocopier supplier to ensure that your business will be able to keep up with competitors.

Quick maintenance – Every electronic device has issues at some point of their use and you would much rather avoid occurring costs related to diagnosing issues and repairs. Leasing suppliers will often include maintenance of their equipment in the overall cost of the contract. This means that if your photocopier stops working, the supplier will fix the problem or offer you a replacement, or even upgrade to get you back up and running again. In this scenario, leasing would be the preferred choice, as buying a new photocopier would likely result in a longer period of downtime and may have adverse effects on the business.

Expert advice – There are so many features in modern photocopiers that it is hard for some people to know what features are desirable to them. Reaching out to a supplier will help a business get great advice from a professional, to gain a better understanding of what photocopier will be most appropriate for their business.

Cons

Cost – If you are a business that has low cash flow or poor credit, it may be difficult to sign a contract with a photocopier supplier. In addition to this, leasing a photocopier may end up more expensive that actually purchasing a photocopier in the long term.

You don’t own it – When leasing a photocopier, you are essentially borrowing it from a supplier, the photocopier does not belong to you at all. If business is slow and you stop using the photocopier on a regular basis, you will still need to pay for the leasing costs!

Contract – Once you agree to the contract stated by the photocopier supplier, you are locked in until that contract is over. This could be risky if your business has less cash flow than expected, as failure to pay the leasing bills could cause even more issues. Some suppliers have strict contracts that limit the options of the business, or make it difficult to terminate the contract. It is very important to read the contract thoroughly before signing it, to make sure you are aware of any hidden fees such as insurance or administration.

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