Advice on leasing a photocopier

Advice on leasing a photocopier

Leasing copiers in Miami is one sure fire way to avoid the necessity of having to come up with the cash to make an outright purchase. The overall cost of leasing may be greater than purchasing but there are sound reasons why a business should consider leasing their copiers and other office equipment.

Leasing is a very tax efficient way to finance the acquisition of equipment. It allows the business to have modern, state of the art technology at the time when they need it most.

This guide may help a small businessman understand the benefits of leasing.

What are the benefits of leasing a copier?

For many small companies laying out thousands of dollars to purchase office equipment can be very daunting. The company needs a copier for sure but the thought of buying something that becomes obsolete within a very short period of time is hard to swallow. The wise alternative which is used by many businesses, both large and small, is leasing.

Budgeting:

Pay as you use is a good strategy for businesses to follow when they can. It is foolish to pay a large lump sum when the easy alternative is to pay small, manageable monthly amounts and have full time access to the machine. Leasing copiers in Miami requires a payment which is not affected by interest rate changes or any other fiscal effect thus allowing the business to forecast the lease payments in advance, thus allowing for cash flow management. The cost of usage can easily be compared to the forecasted revenue and profit that the machine generates.

Tax efficiency:

The cost of leasing is deductable as a business expense, reducing the overall “real” cost of the equipment. Depending on the tax status of the company purchased office equipment may only be amortized 40% in the first year and then 25% of the balance per year until it is fully written off. A lease payment can be reclaimed 100% in the tax year when the payments were made.

Technology upgrades:

It is accepted that office machines never appreciate, they depreciate and everyone knows it. Leasing copiers in Miami gives the business more options to upgrade and keep pace with modern technology. Leasing office equipment creates a hedge against inflation and obsolescence. A business that owns its office equipment can only maintain pace if they continue to invest in new equipment, disposing of their current equipment at a loss.

Capital:

Capital is best used to expand the business, not buy rapidly depreciating office machines. When equipment is leased the capital is freed up for expansion and other worthy ventures. Leasing allows the business to maintain its existing credit lines and to fully optimize their commercial credit for the right reasons.

Payment flexibility:

Payments can be spread over a period from 2 to 5 years. You get immediate access to the machine and only have to face payments that you are comfortable making.

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