Benefits of a Printer Lease

Most businesses find that large printers, either color or black and white, are necessary to fulfill their daily needs. But the price tag on those printers is hefty. When leasing a printer, the cost is spread out over a longer period of time. Leaving a much larger cash flow for other business expenses. This is especially good for new businesses, where their cash and lines of credit are limited.

When your business buys large printers, you’ll find that they aren’t as easy to install. Unlike your home desktop printer, which you can simply plug in and use, larger printers require more setup. Many new business owners are surprised to learn that setup costs for purchased printers often come as an extra expense. In contrast, a printer lease typically includes setup costs in the lease agreement, so your business won’t have to spend additional money on this.

You may also be unaware of the repair costs associated with large printers. Eventually, you’ll face repair bills, and a paper jam might lead to a call for technical support. If you own the printer, your business will cover all repair costs. However, most printer lease agreements include coverage for these repairs, alleviating that financial burden.

One of the biggest benefits of a printer lease is flexibility. If your business finds that the printer isn’t meeting your needs, upgrading becomes easier. You can quickly arrange an upgraded machine with the leasing company. This option is generally less costly than selling your printer and buying a new one.

Additionally, leasing costs may be tax deductible as general operating expenses. This deduction can significantly please your chief financial officer.

When you purchase a printer outright, you spend money without any tax benefits. Leasing allows you to maintain cash flow while enjoying potential savings.

Disadvantages to a Printer Lease

While the benefits of a printer lease may seem compelling, businesses must also consider the disadvantages. With a lease, you never own the printer, so you can’t count it as an asset for your company. Although leasing can provide financial advantages, owning a printer offers its own benefits, such as being able to include depreciation on your taxes—creating a trade-off either way.

Leasing may also lead to higher overall costs, as lease payments can exceed the outright purchase price of the printer over time.

Each company must weigh the short-term and long-term cost benefits, along with other advantages, to determine whether leasing printers is the right choice for them.