One of the biggest investments when starting a new business is office equipment. Copiers, furniture and many other big ticket items are often overlooked – and then when your budget it at it’s tightest, you aren’t able to get the equipment you need most. What many new business owners don’t realize is that they can lease their office equipment and get their office going without breaking the bank.
Buying or leasing, which option is best for you?
The Long Haul: Buying Your Office Equipment
Pros:
- You will own the equipment
You can make any alterations necessary. Maintenance is also in your hands, so you can make sure problems get fixed immediately. No waiting on maintenance or permission for alterations - You can sell it when you’re done!
This way you can make back some of the costs. - Tax Incentives
Under Section 179 of the IRS Tax Code you can get refunds on these bigger items. If your equipment doesn’t qualify, you may leverage a depreciation deduction for the equipment. - No Contracts!
Buying is easier because you don’t have to deal with agreements and contracts. You simply pick out what you need and pay for it. - Get Exactly What You Want!
You have complete control over what you get because you aren’t limited by a leasing company’s stock. If you want a particular model or brand, you have the ability to order exactly that.
Cons
- Higher Upfront Costs.
You will have a higher initial cost as opposed to lower monthly payments. It may be difficult to pay all at once. This may keep you from buying exactly what you want, settling for a lower-cost option. - Keeping up With Technology
Office equipment advances quickly. Once you buy something, you then have to decide if it is worth it to continue to use it, repair it, store it or sell it. - Maintenance is On You
You are responsible for all maintenance, including costs. This can get pricey depending on what issues you encounter, and making repairs is not always simple. You could potentially be burdened with broken equipment that you can’t return or sell. Keep an eye on the product warranty to see if it covers repairs and for how long.
Month-By-Month: Renting Your Office Equipment
Pros:
- Easy Updates
Office equipment often needs to updated annually, in order for the business to remain competitive – when you’re renting, switching to a newer model is a breeze. - Less Up Front Costs!
There is less expense up-front with leasing because you have easy, predictable payments. You don’t have to deal with one large sum to purchase what you need, making it easier to budget for the equipment over a longer period of time. - BIGGER Tax Breaks!
Leasing is often100% tax-deductible as an operational expense under the 179 IRS Tax Code. - More Selection, More Affordable!
Leasing is flexible and offers more options when it comes to the type of equipment you get. You aren’t as restricted by high up-front costs or other hesitations to try something new that may help your business. - Maintenance is Included!
With leasing, you don’t pay for maintenance. If something breaks or has issues due to normal wear and tear, the leasing company is in charge of fixing the equipment.
Cons:
- Long-Term Costs
You usually pay higher costs over time than you would if you paid up-front. - Constricting Lease Terms
The available length of lease terms may be longer than you need. Strict agreements may force you to pay for and keep a piece of equipment for a longer time frame than you require, resulting in wasted funds and space. This can be especially difficult for larger pieces of equipment that you need for a short period of time but don’t have storage space for. - Maintenance is Out of Your Hands!
Maintenance is up to the leasing company’s specifications. At times, you may disagree about what the leasing company should be responsible for, and when they do proceed with repairs, you may have to wait to get things fixed that need immediate attention. - Limited Availability!
Availability of products may be limited depending on the stock of the leasing company. Your choice of brands or models could potentially be out of stock or not carried at all, so you could have to settle for something else.
What is the Best Choice for You?
From this breakdown it seems to be a really tough decision. However, if you re-read the cons listed under the leasing section (Lease Terms, Maintenance and Availability), it becomes clear that these problems arise not from simply leasing your equipment, but who you’re leasing that equipment from!
Anyone starting a business knows to stay away from bad deals. You want to work with people who are going to provide quality products and services at fair prices – and honest equipment lessors (like Business World) are interested in providing the best products and services, so that you will continue to do business with them for years to come.
When it comes to leasing office equipment, the best service includes: fair leasing terms and fees, reliable and efficient maintenance and broad equipment availability. All of which you will find with us – very quickly the cons of leasing your office equipment begin to dissolve and the decision of buying vs. leasing office equipment becomes much easier.
If you have any questions or concerns about your business’ office equipment needs or leasing options contact Business World at 501-214-5482 today!
