For a small business, it can be a burden financially to have a copy machine of their own. Apart from maintenance fees and supply costs that come along with the capital that needs to be invested initially to buy the copier can be pressure on their operational budgets beyond limits that are profitable. by choosing a leased copier it becomes easy to reduce the immediate monetary investment and comes with numerous other benefits that are attractive for medium and small-sized businesses with a tight budget.
Benefits of a leased copier:
Capital: there is usually no unlimited capital available with a small business. Instead, they are always struggling to manage their expenses initially. With a leased copier, businesses can save their financial resources that can be used to explore other business opportunities. It can be used to make purchases that will yield more profit over time rather than investing in an office accessory that will lose value over time as it won’t be upgraded. Buying a copy machine is a big purchase that can put your money stagnant. Instead, you can focus on other important business needs. You can mention in the lease agreements the cost of supplies too. This will further reduce your initial payout.
Budgeting: by leasing a copier you can reduce your budgeting concerns. Instead of making a large purchase one time, by leasing a copier you can schedule quite smaller payments. This enables you to arrange your financial resources in a better manner. You can also choose the terms and length of the agreement for leasing and this offers quite a flexibility while making the payment. If you have set the payment amounts then the fluctuations in interest rates would also not affect it.
Taxes: lease copier gives a lot of tax advantage as compared to purchasing a copier. If you purchase a copier then you may just deduct the depreciation of the machine which is around 40 percent usually of the price that you pay in purchasing in the first year and then 25 percent in subsequent years of purchasing the product. But if you choose to lease out a copier then the payment of the lease is taken as a pretax expense of your business, so you can deduce the amount of the entire payment every time you pay.
Technology: there is a change in copier machine technology over time and so the one you purchase would lose its value with usage and you would always need better and newer technology. If you want to upgrade after you have purchased a copier then the only way is to buy another one. On the contrary agreement of the copier lease will allow up-gradation of the copier on a fixed date. So your office can remain updated with the latest technology.
For more information visit the website https://www.comparisonadvantage.com.au/copiers/.
