In a Post-COVID world, digital workflows have become more commonplace amongst AEC firms and their project partners. Unfortunately, this shift has led many to believe that absolutely all workflows happen on a screen, yet there is still a need for producing and using large paper construction plans.
This continuing need means that many small to medium size AEC companies still entertain the idea of upgrading their wide-format tech for various reasons – upgrades, end-of-lease trade-ups, and expansion. Therefore, equipment leasing remains a very viable option for many businesses.
But, when it comes to leasing, options can be a bit dynamic and confusing, so make sure you understand all the factors before deciding which option suits you best.
"It is well accepted that a plotter or wide-format MFP system is not a business asset that appreciates: This type of technology depreciates faster than the vast majority of purchased assets. So, save purchases for assets that either appreciate or depreciate less."
Leasing vs. Purchasing Advantages
If you are looking for an affordable solution for printing large volumes of documents, then you should consider leasing a large-format printer. Ultimately, leasing lets you get the new technology and pay for it over time. Here are some specific benefits of leasing that some companies use to their advantage.
Many businesses earn revenue over time - to pay as you use it makes sense: Why pay out in one lump sum when you can make small, manageable payments with leasing? Just pay for the portion that you are using at the time.
Payments made throughout a lease arrangement are unaffected by changes in interest rates; you can, therefore, accurately plan for lease payments in advance.
And as cash flow can be forecast, the recurring cost of the leased device can be compared with projected revenue and profits generated by using the equipment during specific projects and standard business operations.
Leasing can reduce your overall tax bill, as the cost is deductible as a business expense reducing the net cost of leasing the equipment. This factor will help determine whether to rent or lease rather than buy.
If you lease a plotter, you do not have to pay the cost immediately, and you may reclaim everything you pay out on a 'by payment' basis - monthly, quarterly, or annually.
It is well accepted that a plotter or wide-format MFP system is not a business asset that appreciates: This type of technology depreciates faster than the vast majority of purchased assets. So, save purchases for assets that either appreciate or depreciate less.
Leasing allows up-to-date office equipment to be installed as required and less affected by budget restraints. As a result, large-format printer leasing improves cash flow and creates a hedge against inflation, depreciation, and obsolescence. Importantly, it allows you to take advantage of technology improvement at a time of your choosing and a reasonable cost.
By contrast, a business that owns its office equipment can only upgrade by reinvesting and disposing of the existing asset.
It makes sense to use business capital for expansion or appreciating business purchases. Leasing for office technology preserves precious resources for these purposes and other business opportunities. Furthermore, you can maintain your existing bank lines and optimize your use of commercial credit sources.
You can choose the option that makes for the most comfortable leasing arrangement; typically, leases are written for 36 or 48-month terms.
Giving immediate access to the printing equipment you need, the necessary speed, and the right multi-functional technology via payments your business can handle without the large deposit generally associated with an outright purchase.
Return on investment (ROI)
Let the new equipment provide you with a return ... The reason for a new wide-format system is to increase productivity; with leasing, you are in the position to use the cost-saving and increased production ROI to make periodic payments.
FAQs about Leasing Plotters
Who retains the equipment at the end of the plotter lease?
The title to the goods remains with the finance provider, which means the equipment does not show on your company balance sheets and, therefore, does not apply to the expected value depreciation over a fixed period.
This gives you the advantage of staying in touch with the latest technology by changing your equipment towards the end of your lease.
Can we upgrade before the wide-format printer lease agreement expires?
Yes. An equipment lease allows businesses to keep up with technological changes as your original installation can be altered either during or at the end of your lease period. The usual reason for this is due to a customer's business expansion and changing needs.
Why should I choose large-format equipment leasing?
All sectors of the US economy take advantage of business equipment leasing; it is the most popular choice for small businesses that need a mid-to-high volume plotter or multi-function system.
This is just like how a large multi-national organization prefers to keep tighter control of its finances and enjoy the tax efficiency and upgrade opportunities of a lease agreement over purchasing.
How does plotter leasing work in practice?
Leasing is a contract between a finance company and a customer, giving the customer use of the equipment on rental payments over a period. For example, when you lease a printer for office use, you make regular (usually monthly) payments instead of a large capital outlay.
Why lease a printer rather than purchase?
The cash flow and tax relief benefits of leasing provide an extreme case against cash purchases. If you buy equipment outright, the capital invested becomes, in effect, tied up in a depreciating asset.
Plotter leasing, on the other hand, allows you to save resources for other purposes or opportunities. To make the right decision for your business, speak to your accountant, who can advise on what is financially best for your company.
Plotter Lease Cost Summary
Leasing can be an excellent method of upgrading technology without the need for large amounts of capital:
- Pay little or no money down in most cases.
- Flexible – choose the contract length that provides you with the best balance between functionality and monthly payment.
- Upgrade option – most leases provide you a way to trade up to new, better technology at the end of the lease.
- Savings – in addition to eliminating a capital expense, leasing provides a way to get extra tax benefits.
See the full line of Canon Color Plotters.
The page was initially published in 2011 but was updated in 2021.