The next time your business needs new computers, networking equipment or other technology, should you buy it or go for renting a printer in London? If you don’t know, read on. This month we’ll take a look at the benefits–and downsides–of both leasing and buying technology equipment, plus the questions you should ask to ensure you get the best deal.
Leasing: The Benefits
- Leasing keeps your equipment up-to-date.Computers and other tech equipment eventually become obsolete. With a lease, you pass the financial burden of obsolescence to the equipment leasing company. For example, let’s say you have a two-year lease on a copy machine. After that lease expires, you’re free to lease whatever equipment is newer, faster and cheaper. (This is also a reason some people prefer to lease their cars.) In fact, 65 percent of respondents to a 2005 Equipment Leasing Association survey said the ability to have the latest equipment was leasing’s number-one perceived benefit.
- You’ll have predictable monthly expenses.With a lease, you have a pre-determined monthly line item, which can help you budget more effectively. Thirty-five percent of respondents to the Equipment Leasing Association’s survey said this was leasing’s second-highest benefit.
- You pay nothing up front.Many small businesses struggle with cash flow and must keep their coffers as full as possible. Because leases rarely require a down payment, you can acquire new equipment without tapping much-needed funds.
- You’re able to more easily keep up with your competitors.Leasing can enable your small business to acquire sophisticated technology, such as a voice over internet protocol (VoIP) phone system, that might be otherwise unaffordable. The result: You’re better able to keep up with your larger competitors without draining your financial resources.
Leasing: The Downsides
- You’ll pay more in the long run.Ultimately, leasing is almost always more expensive than purchasing. For example, a $4,000 computer would cost a total of $5,760 if leased for three years at $160 per month but only $4,000 (plus sales tax) if purchased outright.
- You’re obligated to keep paying even if you stop using the equipment.Depending on the lease terms, you may have to make payments for the entire lease period, even if you no longer need the equipment, which can happen if your business changes.
Buying: The Benefits
- It’s easier than leasing.Buying equipment is easy–you decide what you need, then go out and buy it. Taking out a lease, however, involves at least some paperwork, as leasing companies often ask for detailed, updated financial information. They may also ask how and where the leased equipment will be used. Also, lease terms can be complicated to negotiate. And if you don’t negotiate properly, you could end up paying more than you should or receiving unfavorable terms.
- You call the shots regarding maintenance.Equipment leases often require you to maintain equipment according to the leasing company’s specifications, and that can get expensive. When you buy the equipment outright, you determine the maintenance schedule yourself.
- Your equipment is deductible.Section 179 of the IRS code lets you deduct the full cost of newly purchased assets, such as computer equipment, in the first year. With most leases favored by small businesses–called operating leases–you can only deduct the monthly payment.
Whether you need a workgroup laser printer that doubles as a digital press, a wide-format inkjet or a plotter that can accommodate large CAD drawings, printing equipment can represent a big cash outlay for any business. printer leasing service London instead of buying can help you improve your cash flow and still provide the devices you need to obtain and maintain a competitive advantage. As your hardware needs evolve, leasing can also make them easier to meet and manage.
Keep Equipment Fresh
Because printer leasing Maidstone run for fixed periods of time, after which you typically return the used gear to the leasing company, you can plan your lease terms to coincide with the replacement cycle you want to maintain for your output hardware. Depending on the number of employees who will use a device, the volume it prints and the likelihood that you will either outgrow or outlast it, you can plan ahead for new technology and avoid falling behind improvements in equipment design or features.
Preserve Working Capital
When you lease a printer instead of buying it outright, you avoid the potentially large initial outlay of an equipment purchase. If you finance your acquisition with a bank loan, you’ll be asked for a 10 to 20 percent down payment. A lease may stipulate payment of the first and last months’ installments before the lease term begins, but it represents a much more modest upfront investment. Preserving your business capital enables you to devote your money to other needs, such as staff growth or expansion plans. Choosing a long lease term may reduce payment amounts at the literal expense of increased total cost of ownership, however, as the sum of your payments can exceed the purchase price of the device.
Create a Fixed Cost
Leasing creates a fixed tax-deductible cost that avoids the need for complex depreciation schedules. Although deducting a purchase price as a lump sum may help you offset profits by a tidy sum, it produces a potentially uneven financial scenario, depending on how you schedule your depreciation. By comparison, lease payments become a monthly part of your bottom line. Note that leases that provide buyout clauses that enable you to purchase the equipment at a reduced cost at the end of the lease term may be subject to property tax, depending on how your local and state government structures its tax laws.
Bundled Equipment and Consumables
Leasing a printer can enable you to roll the cost of consumables and maintenance into the fixed cost of the monthly payment. Depending on the hardware you select, you may be able to secure a service agreement that includes ink or toner for a fixed number of printouts per month or quarter, and charges you for additional supplies beyond the output basis of the lease. This lease structure turns both your equipment and your supply payments into a fixed cost for which you can budget more readily than simply buying ink or toner cartridges when you run out.
As a business grows from start-up to powerhouse, it often starts to seem like copies make the world go around. Whether you work with copies to improve your backup system, strengthen your records, or streamline customer service, it’s likely that the company photocopying shops in Maidstone are becoming crucial parts of your daily workflow. However, when it comes to copiers, there are a lot of options out there. Lease or buy? Use your own copier, or go with a copy shop? While each decision has its advantages, many companies decide to have their own on-site copy machines for a few main reasons.
On-Site Copy Machines
Because most companies work with paper like bloggers work with keyboards, it’s important to have a strong print-and-copy environment in your business. Copy machines are a big part of this. Having an on-site copy machine means convenience, opportunity, and maximized workflow–and if you decide that your business needs its own copier, you’ll likely come to find that your print environment is more productive than ever.
What to Consider
Although every business has different needs, it’s likely that having an on-site copier will satisfy at least a few of your company’s daily requirements.
- Personalized schedule. With an on-site copy machine, you aren’t at the mercy of copy shop hours or inconvenient closings. You set the schedule–and if that means making copies at three in the morning, an in-house copier is up for the task.
- Environmental awareness. It is the responsibility of every company, no matter how big, to keep an eye on daily environmental impact. On-site copy machines make this easier than ever. With the convenience of having your copy machine close at hand, you can control usage, unnecessary printing, environmentally-friendly consumables, and energy consumption.
- Leasing. Choosing an on-site copy machine gives you a variety of options. You can buy or lease a copier, depending on what your company needs. And, with the vast variety of leasing opportunities and plans, you’re sure to find the perfect match for your business.
- Security. Protecting your sensitive data is crucial. With an on-site copy machine, you can ensure that everything you copy will be safe and secure so that your most important info stays in the right hands.
Many business startups use the local photocopier services London to make their copies. While this can be a good way to get started, it is not a good way to grow. The time it takes to get copies made, plus the cost of the copies themselves, makes going to the copy shop increasingly expensive. Many advantages exist to having a copier on the premises of your business. The copy center probably leases its copiers from the people you could lease from. In other words, the copy center is marking up its copies to pay for its copy machines. You can cut costs per copy by leasing your own machine.
For a company to survive, you need clients. You should be able to have loyal clients and new clients as well. Most companies have a hard time baiting new clients. Loyal clients are not enough for a company to grow. A continuous flow of new clients is what makes a company grow in business. Here’s how to bait more clients for your company.
To get more clients, be personal with your current clients. Be on a first name basis with them. Most clients prefer to be addressed by their first name because they feel they are valued. Make sure that your current clients get the personalized service they want or need.
The current market needs an online presence. You should have your company website. You can use the website to show what your products you have. Use it to provide services to your future clients. The company website is the fastest way that a client can get in touch with you. Always provide your contact details on your website.
Clients prefer to know who they are working for before they sign up with your company. You can shoot a corporate video to let your clients know who you are and what you do. Adding your corporate video on your website lets your clients access it. Birmingham production companies can shoot and provide you a wonderful corporate video.
Make an online presence through social media. You can pay for Facebook ads. Create a company profile in twitter. Upload corporate videos in YouTube. Link the corporate videos on your website in YouTube to let as many people watch your video as possible. It will let more people know about your company and give you more clients.
A corporate blog is a great addition to getting more clients. Since the key to getting more clients is letting them know about you. Create blogs that have links to your corporate website. It will route your clients to your website and might lead to contacting you.
The most common way to get more clients is thru a referral. You need always to take care of your current clients because a big chunk of referrals will come from them. You can also get referrals from your company linkages.
The client can initially try to contact you. Many clients tend to shop around among companies. To get the upper hand, set up a follow-up system. Your company should have diligent people to follow up with clients that did not sign up yet.
Baiting more clients for your company will take various means. You need to be personal in dealing with your current clients to get many referrals. Follow up on new clients to make sure they sign up with you. You should have a strong online presence by using social media and blogging. Your corporate video will help a lot to let your clients know about you. You can post it on social media and your corporate website.