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The Big Question: To Purchase or Lease Office Equipment

November 13, 2022 | General

One of the most important assets of any business is productivity, which means acquiring the right document flow equipment to handle the workload. However, with the most expensive office equipment, the printers/copiers can be acquired in two ways: to lease or direct purchase.

The benefit of leasing is that it usually does not require any kind of down payment. In addition, your business will know how much your monthly lease payment will be.

There are several lease options: FMV, $1.00 out, or a 10% purchase option. The benefits of an FMV lease are managing the cost of continuous upgrades and can prevent inefficiencies and maintenance issues related to aging and outdated equipment.

Tax savings are typically higher on an FMV lease than a $1.00 out. Also available for the $1.00 out, which means at the end of your lease, the equipment will be yours for $1.

With the 10% purchase option, you can purchase your equipment which is 10% of the original lease purchase price. I usually advise our clients to upgrade their equipment before it comes to term; this will keep them current with technology since it becomes obsolete very quickly.

This leads us to purchase your office equipment, which is the opposite of leasing your printer/copier, and you will sooner or later find yourself stuck with obsolete equipment.

However, this problem won’t exist in the case of leasing. When you lease a printer/copier, you sign a lease for a certain period. Once the lease expires, you can choose not to renew the lease and instead lease a new printer/copier.

Function4 serves Houston, Beaumont, Paris, and the surrounding areas.