When it comes time to replace or upgrade your office equipment, an important decision must be made for your organization: should you lease or buy? For a great number businesses, leasing is the most popular choice when it comes to acquiring office technology. To learn why, let’s take a look at two of the most common types of leases, capital leases and operating leases. Understanding the ins and outs of these leasing options will help prepare you for when it comes to time to make the final decision.
With a capital lease, your organization experiences all of the benefits and downfalls of owning the equipment. Capital leases are typically used in instances where the lessee plans to buy the device at the end of the lease term for a specific amount. Both the interest and principal being paid for the lease go toward the cost of the equipment, and all assets and liabilities for the device are placed on the lessee’s balance sheet. This type of lease is the least common option used, most often when a business wants to purchase a device without paying for it up front.
An operating lease keeps equipment off of the lessee’s balance sheet. The lender owns the equipment and receives the benefits associated with depreciation. This is a good option if you plan to finance equipment for a short period of time, or if you plan to replace the equipment with upgraded technology at the end of the lease period. This is the more popular lease option among businesses.
Leasing brings benefits
The many benefits of leasing office technology make it very difficult to turn down. Here are just some of the benefits that come along with leasing devices:
– Leases are easy to qualify for, making them a great choice for small- to medium-sized businesses (SMBs) with limited capital
– Leases can often be secured without a sizable down payment or none at all
– Leasing allows you to move on and upgrade your equipment when you need to, preventing you from owning outdated technology
– Leases come with a low, predictable, monthly cost, one that typically comes with maintenance included as a part of the leasing agreement
Leasing is an extremely popular option among businesses today for these very reasons. It’s likely that one of these benefits will stand out to your organization. For more information on leasing office technology and help deciding whether it’s the right option for your company, contact Infomax Office Systems today.