Benefits of Equipment Leasing
Every business, regardless of size, needs to acquire office equipment. New machinery, such as printers, multipurpose copiers, and other types of equipment are expensive. Buying any of these items quickly drain funds allocated in a company’s capital budget. Leasing equipment is a good alternative.
All you need to do is make a small security deposit, agree to monthly scheduled payments, and you’ll receive shiny new equipment. After the contract ends, you can renew it, or in most cases, upgrade your equipment to the latest model and sign a new contract. Many Minneapolis-based businesses opt to lease their equipment because it’s quick, easy and comes with many tangible benefits.
Doesn’t affect credit
If you’re leasing equipment, this means you aren’t draining your budget or taking out a loan to purchase new. Leases aren’t treated as loans, which means your credit lines can be freed up to make other purchases your company needs.
Easy to budget
Leasing is a fixed cost, which means companies can budget for the monthly payment and not have to worry about anything beyond this expense. The monthly payment is tax-deductible without having to deal with complex depreciation calculations. No more worries about paying for repairs, replacement parts, or hard to find supplies. Supplies will be delivered as needed. Your partner will take care of all the details. You may also be able to trade in your old equipment and receive a credit towards your lease to further bring down the price. Be sure to ask your vendor if this is an option.
Access to upgraded equipment
Technology development happens so rapidly; by the time a company finishes paying off its equipment purchase, it’s outdated and sometimes even obsolete. With a lease, you’ll always have access to the most modern machinery which allows you to keep up with—or ahead of—the pace of your competitors.
Strengthen security
The equipment used in modern offices perform the same tasks as computers, and most all of them are connected to the internet. This means any data flowing through a printer or other machine will be potentially at risk if security steps aren’t taken. Older equipment is often not up to current security standards. With leased equipment, you can rest assured your equipment has been fitted with any software and firmware upgrades, along with installing any security patches that are released.