Leasing Business Technology Equipment—FAQs Answered
Leasing business technology equipment is a viable option for businesses of all sizes. In many cases, it makes more sense for an organization to lease equipment rather than purchase it outright. We’ve put together a few Frequently Asked Questions that can help you better understand this practical and strategic option to determine whether it’s the right choice for your business.
What is a lease?
A lease is an agreement for the rental of equipment for a specific amount of time.
What’s the difference between a lease and a loan?
A lease attaches a formal contract to the use of a machine.
What’s the difference between leasing and renting?
With leasing, you’re agreeing to make payments (typically monthly) over the life of the agreement, instead of one payment for its entire duration. Typically, renting is short-term (days to weeks) while leasing is long-term (years).
When is leasing better than buying?
Leasing is ideal when you want to limit your initial cash output, since with leasing you make monthly payments over a pre-determined period of time. Leasing is also perfect for companies looking to stay on the cutting edge of technology.
What’s the average length of an office equipment lease?
Typically, an equipment lease for office equipment is 60 months.
Who owns the equipment?
Throughout and after the lease, your lessor (the company providing it) owns the equipment.
Who services and supplies the equipment?
Your lease provisions usually include bundled service, toner, part replacement, and maintenance kits. Talk with your lessor about their package options.
What happens to the equipment after the lease is up?
You may have the option to extend the lease agreement, buy the equipment, or return it to the company.
How much does it cost?
Monthly payments vary depending on the lease length and the type of machine (black and white laser printer, multifunction printer/scanner/copier, copier only, etc.).
What do I pay up front?
Like most leases, equipment leases usually start with payment of the first and last months at the time of lease signing.
So, is leasing business technology equipment right for you? Consider the equipment you need, your ideal payment strategy, and whether you want to manage maintenance or have it handled for you. Contact Infomax today to learn about our office equipment leasing options.