What You Should Know About Copier Leasing
Owning a copy machine can be a costly expense for small to mid-sized businesses. Raising the initial funds for a copier purchase can stretch budgets beyond profitable limits. The supply and maintenance cost of copiers can also be a financial burden. Copier Sales and Service companies help businesses receive the office equipment they need with minimal upfront costs and minimizes the cost of maintaining office equipment. Here is what businesses should know about copier leasing in Houston.
Purchasing a copy machine is costly and businesses may not be able to front the funds to buy one. Establishing financial resources for developing new business opportunities is the focus of many businesses. Office technology depreciates over time, which is why leasing is a popular option. Avoiding office technology purchases like copy machines keep credit and capital available for other significant business needs. Leasing a copier is an economically viable option for companies in Houston that need office equipment at a reasonable cost.
Leasing a copier can alleviate budgeting concerns as businesses can set payment schedules versus issuing one large payment. This enables companies to arrange financial resources for other areas of their business. A leasing agreement dictates the terms and conditions such as supply costs, maintenance fees, and payment schedule. The flexibility copier leasing companies offer does not affect the established payment amounts if interest rates change.
Operating and maintaining a sophisticated copier machine is no easy task. The opportunities for a complex machine to jam and breakdown are vast. In many cases, the clauses in a leasing contract can be negotiated to include a service agreement. The service agreement includes repairing malfunctioning parts, toner replacement, and other maintenance needs. Copier leasing generally has lower maintenance fees as compared to buying a copier outright. Having lower maintenance fees frees up capital to be used for other business expenses.
Copy machines depreciate over time, losing value due to advancements in technology. Purchasing a copier limits the upgrade options available for businesses. The only way to upgrade office equipment is to invest in new machines. Additionally, the removal of an old copier can add to business time expenditures. In contrast, most copier lease agreements have options to upgrade the copier at a predetermined date. Lease arrangements enable businesses to always have the latest in office technology. Being able to upgrade office equipment allows a lower operating cost with the advancement of new technology.
Copier leasing provides a distinct tax advantage over purchasing a copy machine. A purchased copier may only deduct the machine’s depreciation. The depreciation of a copy machine is typically 40 percent of the purchasing price for the first year and 25 percent in subsequent years. The lease payment for office equipment is considered a pre-tax business expense. This means that the entire payment can be deducted. These are the main focal points about copier leasing. As compared to purchasing a copy machine, leasing has its unique advantages. Copier leasing is an economical option for businesses as they are generally cost-efficient to operate. Leasing agreements also include service clauses for the maintenance and upgrade of copy machines. These are just some of the reasons why copier leasing is popular with businesses in the Houston area. Companies that are looking for a complete office solution can turn to Stargel. Stargel is Houston’s largest independent office equipment dealer and has worked with small to large businesses. Contact Stargel for a business consultation at 713-461-5382 today.