Lease Pros & Cons for Printers

Most finance departments and financial decision makers within a business, will at some point face the decision as to whether to lease products/services or pay for them upfront.

 

This is especially prevalent in the Managed IT Services or Managed Print marketplace; therefore, this document is designed to help you make the decision as to which is the best route for your company from an unbiased point of view.

 

Here at Midlands Print Copy Scan we don’t have a preference as to how our clients wish to pay for the services we supply, our only focus is ensuring what we supply is best fit and best of breed.

 

Leasing Pro’s:

  • Have what you need today with no cash outlay

  • Independent finance cannot be withdrawn and keeps existing credit lines open

  • Use bank funding for working capital to maintain a healthy business

  • Fixed payments for the term, means easy budgeting

  • Pay for the equipment as you gain the benefit, not before

  • Let the equipment pay for itself with immediate return on investment – you wouldn’t pay for your staff 3 years in advance!

  • Have what you need – not what your budget limits you to

  • Leasing may overcome budgetary restrictions which prevent capital outlay

  • You are less likely to ‘sweat’ the assets for longer meaning they will be upgraded with an, up to date version sooner

 

Leasing Con’s:

  • You pay interest on the amounts borrowed so overall you pay more, unless your business can claim a proportion of the tax back on leased products (this depends upon how the company is structured and how much profit the business is making).

  • New start businesses can find it difficult to get lease funding in place

  • If you are unsure your business model will sustain the payment amounts over the medium to long term

 

Cash Pro’s

  • If you are cash rich, you own the assets from day one and can sweat the asset for as long as you wish

  • Depending on your company status and turnover, you may not be eligible to claim tax back from a lease – so in those circumstances you would pay less overall

  • If you wish, in the future you may be able to sell on the assets

 

Cash Con’s

  • Reduced budget in the first year where the initial outlay takes place. Have you considered other big cash projects that may need to take place, where leasing isn’t an option.