An introduction to leasing a printer for your business.
J Paul Getty said “If it appreciates, buy it. If it depreciates, lease it”. He did well for himself and we tend to agree with him on this point in particular. Like any other I.T. hardware, your printer is not going to go up in value over time – that being the case, perhaps an outright purchase isn’t the best way to acquire it.
That’s where print leasing comes in. Leasing has many benefits when you’re looking for I.T. equipment, in fact: when companies don’t lease, we think they’re losing out on several significant benefits. In an effort to remedy this, we’ve prepared the following brief guide to print leasing!
Leasing a printer will improve cash flow.
When you lease a printer you get the immediate benefit of new hardware (lower operational costs, less maintenance and improved functionality) without the immediate hit to your finances. In other words leasing protects the opportunity value of your cash. Typically a printer lease is spread across 3 or 5 years, so the periodic costs are a fraction of buying outright. Payments are fixed across the term, so there are no surprises. Once in place, you can enjoy your new printer while you use your capital to invest in your business to reach your growth targets.
Leasing helps you to avoid banks.
Banks can be reluctant to lend, and they make the process as painful as possible. A print leasing agreement allows you to access the finance you need, without the pain of dealing with a bank. Usually, a leasing company will approve your finance with 6 – 12 months of figures – rather than a full DNA test and 2 hours of written questions. They’re in the business of lending to businesses, and you’re treated quickly and fairly by them.
It’s tax-efficient – and who doesn’t like that?!
When you choose to lease a printer you’re not just helping cash flow, you’re also making a sound tax planning decision. All rentals payable under a lease are due for 100% tax relief, plus you can claim back the VAT.
No need to compromise on technology
The pace of technological advancement within office printers and copiers is hard to grasp at times. Whilst the essence of the machine hasn’t changed the functionality constantly develops. Improved life span, lower maintenance costs, lower print costs, longer maintenance cycles are typical incremental improvements arriving with each new range. Built-in security functions and anti-virus tech keep offices GDPR compliant and secure in an ever-changing privacy and security landscape. Simple ‘print to paper’ becomes scan, OCR and then direct to cloud apps as organisations’ digital transformation continues.
Basically, old print technology does less of the things you need and costs you more money. Leasing a printer allows you to upgrade when you need to, without feeling compelled to ‘sweat the asset’ for another couple of years.
A protected investment
Printer leases are provided with back to back service agreements. Lines down the middle of your prints – we’ll fix it. Need a new £400 drum unit? We’ll fix it (for free). Run out of toner? We’ll replace it. A lease is a wrapper for complete peace of mind whilst you operate the hardware. In a purchase scenario, we’ve calculated that a least 70% of the purchase price will be spent again on maintenance during a 5-year cycle. It doesn’t make sense to arrange and pay for this yourself, leasing a printer takes this hassle away – one simple quarterly payment and no other hassles.
“Where do we get our toners from again? ” – when you buy a printer you’re responsible for sourcing the best price on toner when there’s a maintenance issue you’re going to have to find a service engineer (and pay them). Is there a new starter in accounts? You’re going to have to install software and set them up as a copier user, add their network scan locations and all of that ‘good stuff’. Or you could opt for a print lease, and we’ll do everything.
Leasing a printer allows for early upgrades
Leasing gives you the flexibility to upgrade or replace hardware early, with an outright purchase you’re either going to live with your choice or re-buy the whole thing again. Three years into a print lease you may realise you need an upgrade option that you passed over at the beginning of the deal – no problem, a lease is flexible enough to factor this in.
Hopefully, you now have enough information to consider leasing your next printer or copier. We’re certain it’s the best all-round solution for 90% of small and medium businesses. If you have any questions at all, please don’t hesitate to get in touch with us.
Thanks for reading!