XMA offers all financing options, including rental, financed purchases and even cash purchase. Contact us for more information about the financing options available.
Should You Lease or Purchase That New MFP?
This question tends to enter into the minds of SMB managers when the time comes to acquire a new digital MFP: Should the equipment be purchased or leased? This is one of the top five most frequently asked questions at XMA Solutions Technologiques as customers seek to weigh the pros and cons of each option and make the best decision for their business.
The fact that a purchase or lease may be a tax deduction at the onset of tax season does not make the decision any easier. You need to know the pros and cons of both sides of the process. We have outlined some of the details related to both purchasing and leasing new multifunctions to help you better determine which alternative would best meet your needs.
Leasing Pros & Cons
Cash flow: by leasing your new MFP equipment, you reduce your available operating budget by avoiding having to spend a significant amount of capital. In addition, lease options offer different payment plans, allowing for a tolerable amount to be paid toward the use of the equipment on a time schedule that suits your financial needs.
Flexibility: in addition to the flexible payment plans, a lease often offers provision for upgrades to respond to advances in technology and trade-in opportunities. This helps you to avoid any issues that could cause your equipment to be considered obsolete.
Value: when your lease term comes to an end, the residual value of the equipment tends to be higher than that of equipment that is owned outright.
The downside: with leasing, there is the possibility that expensive penalty fees could result from any early termination of the lease. It is also a good business practice to understand the end of the lease renewal terms. If the lease automatically renews how long is this for and what are the costs?
Purchasing Pros & Cons
Less cost: an outright purchase of your new digital MFP, particularly if undertaken without any interest fees or bank loans, can potentially be less expensive in the long run when compared in a spreadsheet head to head to versus a leased piece of equipment.
Value: the purchased equipment is not only a write-off for tax purposes, but the device also becomes a company asset.
The downside: a large purchase that requires a large payment has an impact on your liquidity, so you need to consider how it might affect the cash flow that is needed for other branches of your business operations. Additionally, it may be more difficult to trade-in or upgrade your purchased equipment to keep up with technological improvements.
With the constant advances in technology, it is important to choose the option that best suits your business when deciding to lease or purchase your new MFPs. And don’t forget, no matter whether you decide to purchase or lease, make sure you investigate what is included with the service agreement when it comes to a replacement guarantee with faulty equipment. You may be surprised at what you find out.
If you would like to learn more about which option would be best for you and how to
avoid any unwanted surprises contact us at XMA Solutions Technologiques.