What's best for your business: buying or leasing a photocopier printer?
Deciding whether to buy or lease a copier-printer is often simply personal preference, but there are some clear pros and cons to each depending on your usage and office printing and copying requirements.
At a time when depreciation of office equipment is very rapid, many offices are asking themselves if it's sensible to buy a photocopier or more cost effective to lease or rent a copier-scanner.
Leasing is an additional source of funds for you. It leaves your lines of credit and cash balances fully available for other essential business needs.
Leasing your machine saves Working Capital - If you buy your photocopier outright the money invested in it becomes tied up as it is a depreciating asset. Leasing your photocopier allows to save your resources for other projects.
Tax Efficient - If your company pays corporation tax, leasing your photocopier could be more tax efficient. Lease rental payments may be deducted from taxable profit.
Q : What’s the difference in the Tax Allowances?
A : If decide to purchase you will be able to claim 40% of the photocopier purchase price against tax in the first year and in subsequent years thereafter claim 25% of the outstanding balance. If you decide to lease, you do not have to pay the cost of the photocopier immediately and you may reclaim everything you pay out on a monthly / quarterly / annual basis.
Q : With a lease agreement could my company upgrade our photocopier in the future if our requirements change?
A : Yes you can. But you must be aware that as with any lease finance agreement the remaining payments will be added to the cost of the equipment of your new lease.
The overall conclusion is that both options have their pros and cons. Sometimes it is wise to seek the advice of a qualified professional accountant as tax allowances do change from time to time.
If you're looking for a photocopier to buy, rent or lease in the Kent, Surrey or East Sussex area, Magenta Digital Systems Ltd also offer an In-House rental facility for those who are starting a new business or having difficulty obtaining credit, or looking for short term requirements such as an off site project. Call us for details now on 0800 030 6800
Multi-function office printing and copying solutions to lease, rent or buy
We supply and service leases for schools, small businesses and other organisations in Kent, Surrey and East Sussex including; Allington, Ashford, Aylesford, Bapchild, Bearstead, Bexleyheath, Blue Bell Hill, Bobbing, Brighton, Chatham, Dartford, London, East Malling, Faversham, Gillingham, Gravesend, Kings Hill, Maidstone, Meopham, Newington, Orpington, Paddock Wood, Rainham, Rochester, Sevenoaks, Sheerness, Sittingbourne, Snodland, Strood, Tonbridge, Tunbridge Wells, West Kingsdown and West Malling.
To learn more about your options and the benefits of each option, contact us today to speak to one of our friendly engineers who can answer your questions, identify an ideal machine for you and outline the various cost options.