When running a business here in Kingwood, your office equipment needs to be predictable. It should always work the way it was designed to work. Otherwise, time, productivity, and revenue can suffer. So, when you’ve suffered long enough and are finally deciding to add a new piece of office equipment to your office, you should consider leasing your next machine. Leasing office equipment is a great solution for businesses looking for an affordable way to keep up with the latest technology while staying ahead of the competition.
Benefits of Leasing
- Acquire the latest technology. Leasing lowers your up-front costs. As a result, your business can avoid falling behind because you can acquire the machines you need right now instead of struggling without them.
- Reduce the need for taking out a loan. New businesses often have limited access to credit, so leasing is an excellent way to avoid having to apply for loans.
- Deduct it as a business expense from your taxes. If you were to take out a loan, it would be an additional debt credited to your business. However, leasing is considered a business expense you can deduct during tax season.
- Avoid paying for expensive repairs and replacements. Leases often include a warranty for certain types of equipment defects or can be bundled with a service package. This will reduce the financial burden on you, and it will keep you from having downtime. On the other hand, a purchased device is solely your responsibility.
Types of Equipment Leasing
When seeking ways to make equipment upkeep more affordable, you will notice several types of leases being described. All these fall under two primary categories: capital and operating leases.
Capital Lease: A capital lease is much like a rent-to-own plan. A total cost of the equipment is determined, and monthly payments are contracted and financed. This equipment will be yours as soon as you receive it, entitling you to use the machine as an asset. This would be the kind of lease to acquire if you plan to buy the equipment by the end of the leasing terms.
Operating Lease: An operating lease is different than a capital lease, in that it is more of a rental agreement (without any interest), oftentimes including all maintenance for the device. Purchasing at the end of the term is an option, but so is updating to the latest equipment. However, because you do not own the unit, you cannot deduct depreciation costs.
Chances are you might have quite a few questions about equipment leasing. Please contact Hart Office Solutions for assistance on deciding which leasing plan is right for you.