Photocopier: Is It Better To Rent or Buy?
Photocopiers have been around since 1938. And ever since their launch; they have become an indispensable part of every office. That said, most business owners struggle with one key question when planning to include one in their office. Should I buy a photocopier or lease it? This article aims to make the decision easier for you. We’ll discuss the pros and cons of both buying and renting a photocopier for your business. Buy a Photocopier Outright Before you make up your mind to purchase a photocopier let us consider some of the pros and cons of buying a photocopier. Pros of purchasing a photocopier 1. Less expensive 2. Zero paperwork 3. Flexibility and control 4. Tax incentives 5. No contracts 6. Recoup investment Cons of purchasing a photocopier Agreed that the advantages of buying a photocopy machine are attractive. However, before you jump in to purchase one, take a quick peek into the drawbacks mentioned below: 1. High initial expense 2. Replacement costs 3. Lack of standardization Rent a Photocopier Before talking about the advantages and disadvantages of renting a photocopy machine, let’s run through the types of lease agreements considered for renting. Types of photocopier lease In general, photocopier leases can be classified into two: 1. Operating lease 2. Capital lease (rent-to-own) Pros of renting a photocopier While renting a copier, it is essential to consider what type of lease (renting lease or operating lease) you are asked to sign. Businesses often choose the renting lease instead of operating lease because of lower monthly payments and tax benefits. Let us, therefore, focus on the benefits of the renting lease. 1. Avoiding machine being obsolete 2. Leading technology 3. Convenience 4. Low upfront cost 5. Tax deductions Cons of renting a photocopier 1. Higher expenses 2. Tight contractual obligation 3. Lack of flexibility and control Should You Lease or Buy a Photocopier? Photocopiers are one of the essential pieces of equipment for running a physical office. The purchasing option may not always suit the pockets of an SMB or a new business. In such cases, leasing is considered the best choice. On the other hand, if your company wants to stick to basic features and technology, buying is considered a better and more cost-efficient option for the long run. It is safe to say that the choice depends on the type of your business and the goals that you have in your mind. The article provides a detailed discussion on the pros and cons of both buying and renting a photocopier. We hope it helps you take an informed decision! Want to explore both renting and buying options? Contact us for a consultation today. Frequently Asked Questions on Photocopier Lease or Buy Is there a buyout option in the photocopier lease? Some photocopier rental suppliers provide a buyout option during the lease period of the copier. This is an option to purchase a leased copier at any point of the lease period. The leasing company determines the buyout price depending on the equipment’s residual value and the remaining payments left. Opting for the buyout is a great option when the agreement for lease is not meeting your needs. How long is a photocopier lease term? It depends on the terms of the contract. In general, a period of 24 months and 36 months is standard. If the company wishes, they can opt for an extended lease period. Does the photocopier need to be insured? Yes, it is advisable to insure your photocopier to safeguard your company from legal suits. This is a vital requirement for several photocopier leasing companies while you lease their photocopier. Printer and copier insurance covers situations where your machine is destroyed by some mishaps or accidents such as fire, lightning, short circuits, earthquakes, etc. The policy can also cover legal expenses and other related costs. Can I add to the photocopier lease term? Yes, you can. It will depend on your service provider. Several service providers give their customers the option to add to the photocopier lease term. If you are looking for a new or refurbished photocopier for your copying and scanning needs, Bizcopier Solutions Sdn bhd offers competitive photocopier rental packages for businesses in KL & Selangor. Contact us now to learn more about our packages!