The cost of a photocopier tends to increase with its speed, capacity and the volume it is capable of. A business needing a photocopier for nominal usage may only need a small office photocopier, purchased at a fairly low cost. This could be more cost effective than a lease agreement. However, a business needing several high end photocopiers may consider a leasing agreement to avoid paying a large initial fee and reduce overall running costs.
When leasing a photocopier, all the costs of the device are fixed in advance and this is considered to be inflation proof as any payments made in the future are in fixed money terms. A device that is purchased and owned by a business is likely to depreciate in value fairly quickly as technology advances.
Lease agreements typically last between 1 and 5 years and terminating a lease before it ends can be difficult. It is therefore vital that the photocopier chosen is one that suits the company's needs and that the supplier used is reliable and has a good reputation! Leases can offer flexibility once a preferred lease term is agreed as it allows the business to renew for new technology at the end of the lease or even during agreements. When purchasing a device, companies tend to be more resistant to change and are not able to keep as up to date with the best office equipment, which could have an effect on business needs.
The only extra cost of a lease agreement is the fully inclusive maintenance which covers all parts, toner and labour for the duration of the agreement. The total overall costs may well be reduced due to extremely low toner inclusive running costs, making leasing higher specification a very effective way of reducing total costs of expensive printing compared with in house or outsourced printing.
It is also possible for lease costs to be off-set against profits and deducted from any taxable profits as photocopier lease agreements are usually considered as an operating cost and not as a business asset. This can save a substantial amount, but it should always be checked first that the business and the equipment itself are eligible for this deduction.
It is important to assess the exact needs of a business before making a decision about whether to lease or buy business equipment (most decent suppliers will help a great deal with this) and, if choosing to lease the equipment, it must be made sure that the details of the service agreement are clear and fair. Choosing to take out a lease agreement can save a business a substantial amount of money and give peace of mind in today's uncertain financial climate, as long as a credible and reliable supplier is used.
