At Leasing Business we know that leasing office equipment offers a great number of the benefits to your company. Financial experts agree that these are a few of the key reasons that your company should lease office equipment:
Guards against obsolescence
With the constant improvements in computer operating systems it is best to have the flexibility to easily update peripheral equipment like multi-functional printers. Leasing allows your company to automatically stay up-to-date with computer operating systems. Leasing also insures that your company will use the latest scanning and printing technologies to maximize your productivity.
Preserves working capital
By leasing you pay for office equipment the same way that you pay for electricity and payroll expenses. Pay for office equipment as you receive the benefits. Instead of paying for five years of use all at once, pay for the use of your business equipment one month at a time.
Lower overall costs
A common misconception is that your overall cost for leasing office equipment is higher than purchasing office equipment. In nearly all cases, your overall cost is lower when you compare leasing office equipment to purchasing office equipment.
The overall cost of acquiring office equipment is composed of the lease or purchase cost plus the maintenance cost. The maintenance cost for office equipment must increase each year to account for the rising cost of parts and labor due to the increased number of service calls on old equipment. Basically, the older office equipment gets; the more it costs to maintain the equipment. Any higher total acquisition costs of leasing is usually off-set by the higher maintenance costs of keeping old equipment.
Flexibility to change
The only constant in business is change. We have all heard this old saying, but it directly applies to your office equipment needs. As your needs change you can keep your company’s equipment up to date.
Proactive expense management
Most companies that use a purchasing strategy for office equipment keep the equipment as long as the equipment can be kept in operation. When the equipment can no longer be kept functioning, the result is an unplanned cash outlay which frequently has no advanced warning. Leasing allows companies to replace equipment before it’s useful life is over so there are no unplanned expenses or capital purchases.
Potential Tax advantages
For many companies, leasing provides tax advantages since operating lease payments can be deducted as business expenses.
Please consult your professional tax advisor to determine whether your company has better tax advantages from leasing than purchasing.