The purchase of a copy machine can add to the financial burden on small businesses. Aside from the many financial costs that you have to deal with, the substantial capital required to purchase can stretch your budget and affect your bottom line. It is then more practical to seek the help of Copier leasing Louisville company to cushion the financial blow that a new copier may make on your finances.
Below are a few of the long list of advantages of copier leasing for the business’ enhanced productivity:
Capital
More often than not, a small business has very limited capital to work with and saving funds for potential business opportunities and investments remain top priority. Leasing a copier will help small businesses avoid making big purchases and will keep the credit line available for any important business needs that may come up.
Budgeting
Choosing to lease will help you stay within your desired monthly budget of expenses by helping you avoid making one large payment. Leasing allows you to make smaller payments and gives you the opportunity to allocate your financial resources to your other business needs.
Taxes
The tax advantage that accompanies leasing a copier makes this option more attractive over outright purchasing. When buying a copy machine, you’re only allowed to deduct the copier’s depreciation which just amounts to about 40% of the purchase price for the first year and just 25% of its purchase price in the subsequent years. When a copier is leased, the payment is counted as a pretax business expense and business owners can deduct the entire amount each time that the payment is made.
Technology
The technology of copier machine is continuously changing, making existing copiers lose its value to the newly manufactured counterparts. When a copier was paid up front, you would have to purchase a new one in order to get the upgraded machine. However, when leasing a copier, lease agreements would usually provide you with an option to upgrade at a predetermined date. This way, the copier you have in use will always have the newest technology and you save more in the long-run because of increased efficiency.
Easy Financing
Finding a means to finance the cost of leasing will be easier than when you purchase your copier. It is customary for banks to require the submission of two to three years’ worth of financial records before they extend you a capital equipment loan and many small and starting businesses will not even have a few of these on their possession. Companies that lease office equipment only require about 6 months of your credit history before passing an approval for a lease. Moreover, they will not require any down payment and will instead require a security deposit that can be refunded later on, while equipment loans from bank generally require a downpayment of at least 25 percent.
Know more about how leasing a copier can help benefit your business and your company’s operation. Call Copier leasing in Louisville at (502) 208 4255 today.