Leasing is an effective form of financing major business equipment like multifunctional devices (MFDs) as you can utilise new technology at the right time, at a reasonable cost.
Options Include:
- Lease Periods from 1 to 5 years
- 6 months Deferred Payments
- Ownership Option at the end
A Few Questions Answered
Q: Should I Lease or Buy?
A: This is frequently decided by your own cash flow situation and your requirements [photocopiers budgets range from $500 - $100K +]. If in doubt ask your accountant.
Q: What?s the difference in Tax Allowances?
A: If you buy you will be able to claim 40% of the photocopier purchase price against tax in the first year and thereafter claim 25% of the outstanding balance.
If you lease you do not have to pay the cost of the photocopier immediately and you may reclaim everything you pay out on a monthly / quarterly / annual basis.
Q: Who owns the copier at the end of the Lease?
A: The Leasing company but frequently you can negotiate ownership at the end of the lease.
Q: With a copier Lease can I upgrade in the future if my requirements change?
A: Yes! But beware many suppliers will lie and tell you that this is free of charge.
This is not true ? any outstanding payments will be added to your new lease. Making the second machine a higher cost than if you hadn?t upgraded.
Q: Is copier Service included in the Copier Lease?
A: No! A charge for copies may be made and added to the lease cost but leases usually have a disclaimer that the Photocopier Service is separate to the Photocopier lease and if the photocopier service given is not satisfactory it will not affect the lease cost apportioned to the photocopier.
Q: Why some companies offer lower lease rates for the same photocopier cost?
A: If the photocopier cost is similar and the lease cost is very different this will be for one of two reasons
- A reduced lease rate has been offered for a larger initial payment being made or;
- An additional Quarter is charged i.e. there are 12 quarters in a 3 year lease.Normal charges are 1 payment followed by the remaining 11 quarters. You may be asked to pay 1 quarter followed by a further 12 payments.
Our advice is to check exactly how many payments you are going to have to pay. All of our prices are for a standard payment method if you would like us to quote for one of the alternatives above please contact us.
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