The Benefits and Pitfalls of Leasing Photocopier Equipment
You can lease for any period (technically speaking) from 1 - 5 years, however it is quite normal to lease over 3 years. 5 years can be seen at bit of a stretch for most people but in my mind it is best to lease over 3 or 4 years tops. Why? The technology nowadays is evolving so quickly with the price of colour MFD's coming down to what used to be a fast mono copier price.
There are benefits and pitfalls of both - I will try and list the main reasons for both whilst adding any angles which don't fit into the pro and con scenario.
The benefits of leasing are quite easy to explain so I will list them below.
Leasing enables a company to spread the cost of equipment over a period of time that matches the usable life of the equipment. Photocopier have a normal life span of between 3-5 years (in some cases up to7) So it is quite plausible to lease over 3 or 4 years with the option of upgrading at any time.
Leasing is tax efficient - allowing the company to claim a tax refund from corporation tax against the amount that is leased for each fiscal year. Lots of different types of equipment can be leased from cars all the way through to production and engineering equipment.
Leasing enables the company to keep the capital normally spent on buying equipment in the bank - giving the company more opportunity to spend that money on other things that are not available on leasing.
Leasing also gives greater flexibility long term for that equipment by giving the company an opportunity to upgrade or downgrade if needed during the term of the contract.
Benefits of cash purchase
It is your equipment to sell at anytime should you want to.
You are not tied in to a credit agreement.
3.You may have excess cash in the bank and do not want to pay interest on the equipment.
What happens to the equipment after the lease is up
In short the title of ownership is always held by the leasing company but it can normally be sold to the company at the end of the lease for around £100 or so. You really need to make sure you inform you're accountant about this as you may become liable for the tax benefits that you got over the lease period.
For help, information and to get the BEST UK prices in the UK GUARANTEED, please contact Simon Tarling on 020 8253 4655 or visit us on http://www.dmcplc.co.uk
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