Investing in any asset for your office requires consideration of all pros and cons, and when there’s the option to either buy or rent, then there’s even more to take into account. Many office suppliers will rent printers and copiers to companies for a monthly fee, but there are contractual commitments included.Here are some of the benefits of both renting and buying office printers and copiers.
Benefits of renting printers and copiers
- Lower initial costs, better cash flow and tax benefits
- No replacement costs
- Flexible payment plans
Particularly important for start-ups or companies that are unsure about their printing and copying requirements long-term, renting a printer or copier means there are fewer upfront costs. The initial expense of buying a printer or copier could be too high, but the company cannot run without it, so renting is the most realistic option. This is particularly true of companies needing highly specialised equipment.
Most equipment providers will rent out printers and copiers with maintenance plans which means the hassles of dealing with equipment malfunctions don’t fall on the shoulders of the lessee. When equipment has served its purpose and needs to be re-sold, the burden of seeking buyers falls onto the supplier.
Similarly, when an office copier or printer has become outdated or is starting to malfunction, then it will need to be replaced – at a cost. Fortunately, for those renting a copier or printer, the unexpected replacement costs will be absorbed by the supplier and not business owner.
Investing in a copier or printer is generally a standard procedure which involves big costs from the start. However, when renting a copier or printer, there are often flexible payment plans which can be customised to suit individual business requirements.
Benefits of buying printers and copiers
- Long-term savings, “sweat the asset”
- No contract stipulations
- No penalties
- Maintenance and repairs
While there is no doubt that buying a printer or copier is expensive, the rental option does cost more in the long run. The lessee is required to pay interest monthly on the rental, eventually having paid more in the long-run than the market value of the printer or copier. Suppliers may offer maintenance plans, but this will be at an additional cost to the lessee.
When renting a copier or printer, the business has to sign a contract – usually 60 months – which can be problematic if copier or printing needs adapt throughout the term. This is a particular setback for start-up companies that can’t always foresee their printing and copying needs ahead of time. Smaller businesses may also get locked into a rental agreement and then find they don’t actually need the copier or printer, so it costs unnecessarily. With an upfront purchase, there are no additional payments and the copier or printer can be sold if not needed. Talk to Diverso for different/flexible options.
In a rental agreement, there will be the option to terminate the contract if the copier or printer requirements change, but this will come with penalties. Some rental agreements will also automatically renew on completion, locking the business into another year unwittingly. When a copier or printer is bought, there is no worry about these costs. (However, make sure you buy the correct specification for the requirement)
The costs and particular requirements of each company need to be thoroughly assessed before a decision is made on renting or buying copiers and printers. If a rental agreement is in place, the business must understand all the cost implications going forward, including any penalties they might incur.
This newsletter is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Errors and omissions excepted (E&OE).