Many businesses earn revenue over time - to pay as you use makes sense: Why pay out in one lump sum when with leasing you can make small fixed manageable payments? It equates to pay as you use. 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, cost of use can be compared with projected revenue and profits generated by the use of the plotter and/or wide-format scanner.
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 you do not have to pay the cost of the plotter immediately and you may reclaim everything you pay out on a 'by payment' basis - monthly, quaterly 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 gives more freedom for up to date office equipment, important with printers and copiers, to be installed as required, less affected by budget restraints. 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 at a reasonable cost. By contrast, a business that owns its office equipment can only upgrade by reinvesting and disposing of the existing asset. A wide printer lease with TAVCO will include provisions to trade up to a newer model or, when necessary, to one that accommodates the higher volume, speed and features your business requires at the right time, giving you freedom to upgrade without buying new.
Because the latest wide-format systems are multifunctional i.e. they combine all the functions of a plotter, scanner, and wide-format copier, it makes sense to be able to upgrade all these products and facilities at the same time rather than having to deal with multiple outdated machinery. This is one of the newer benefits of leasing combined with the latest multifunctional systems.
It makes sense to use capital for expansion or appreciating business purchases. Leasing for office technology preserves precious resources for these purposes and other business opportunities. Furthermore, you are able to preserve your existing bank lines and optimise your use of commercial credit sources.
You can choose the option that makes for the most comfortable leasing arrangement, normally up to 5 years, giving immediate access to the printing equipment you need, the necessary speed, and the right multifunctional technology, via payments your business can handle and without the large deposit normally associated with outright purchase.
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 the periodic payments.
Title to the goods remains with the finance provider, which means the equipment does not show on your company balance sheets and therefore not applicable to the expected value depreciation over a fixed period. This of course gives you the advantage of staying in touch with the latest technology by changing your equipment towards the end of your lease.
Yes. An equipment leasing organization allows businesses to keep up with changes in technology as your original installation can be altered either during or at the end of your lease period. The normal reason for this is due to a customer's expansion of business and their changing needs.
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 multifunction system just as a large multi-national organizations prefers to keep a tighter control on their finances and enjoy the tax efficiency and upgrade opportunities of a lease agreement over purchasing.
Leasing is a contract between a finance company and a customer, giving the customer use of the equipment on payments of rentals over a period. When you lease equipment you make a series of regular (usually monthly) payments, instead of a large capital outlay.
The cash flow and tax relief benefits of leasing provide a very strong case against cash purchase. 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 be sure of the right decision for your business specifically, speak to your accountant who can advise upon what is best for your company financially.