So, your company has decided that it needs new office technology. You might have even decided what type. For many, the next biggest question revolves around how you will pay for this equipment—through a lease, or by buying it outright? Both options come with advantages and disadvantages. Read on to learn more.
The Advantages of Leasing Office Equipment
- Newest Technology: Office Technology is constantly changing and improving. At the end of your copier lease, it’s easy to switch to the newest equipment. Even if you are a small company, leasing enables you to stay competitive in your field.
- Fixed Cost: With a lease, you will have a consistent monthly budget item for your office and document management technology, and you can use it to plan and budget accordingly.
- Upfront Costs: Don’t worry about shelling out a huge sum of money for your office equipment. Your company can keep those funds in your account and allocate them for other uses. Or, your company might not have that amount of money; leasing allows you to have the multifunctional devices and document management technology while paying at your own rate.
The Disadvantages of Leasing Office Equipment
- Cost: Leasing usually is more expensive than purchasing a copier outright. Monthly payments are easier to handle while paying, but you are paying for that convenience. The overall cost will end up adding up to more than the original cost.
- Leasing Agreements: Leasing terms can include maintenance regulations and payment requirements. If you stop using the equipment, you may still be required to pay for the entire leasing period or a large fee, or to buy out the rest of your lease.
- Lack of Ownership: You will never gain equity in the equipment because you will never own it. This means that you can’t sell the office equipment if you no longer need it, and it is not an asset of your company.
The Advantages of Buying Office Equipment
- Easier: When you buy new office technology, you pick out what you need, and then you buy it. You don’t have to worry about negotiating terms or setting up your financials with the leasing company.
- Ownership: When you buy multifunctional equipment outright, it is yours and you can do as you see fit with the machine.
The Disadvantages of Buying Office Equipment
- Outdated Technology: With the rapid changes in document management technology, your office equipment will become outdated. You will need to either continue using outdated equipment or donate or sell the copier and buy new. Newer multifunction machines are easier for service companies to maintain and typically have lower operating costs.
- Cash Flow: If you’re a smaller business, you might not have the funds to shell out the money required to buy office technology outright. This could limit your ability to purchasing copier equipment that will help you be as strong as your competitors.
Buying new office equipment and document management technology can be a big decision for your company. To learn more about the office equipment that Centric offers, contact us at (877) 902-3301.