HP Printers – Own, Rent or Lease?
Looking to acquire new HP printers for your business or home office? Purchasing a printer or multi-functional device is only one of several financial options for companies to acquire this type of equipment. You may not be aware of the options available and the benefits and drawbacks of each of them. If your company is in the market for a new printer or multi-functional device, then it would be wise to understand exactly what options exist and how the various transactions are structured.
Printer rental is typically, but not always, a short-term agreement, perhaps as short as a month-to-month contract where the creditworthiness of the party renting is not as stringently considered as it will be with longer-term lease agreements. Leasing your HP printers involves a financial arrangement in terms of which the use of the printer is given to you by the lessor for a fixed monthly amount over a set time. The agreement may or may not cover the maintenance and servicing of the device for the duration of the lease period. This may even include not only parts for and maintenance of the unit but also ink or toner and any other consumables required. The lease of your HP printers may be financed by the company providing the equipment or by a bank or financial house. Some form of a credit check will be done, and your company will have to be proven creditworthy to qualify for the lease.
HP Printer Leasing Options
Lease and rental are often used interchangeably to describe a range of financial arrangements for the acquisition of assets. Based on the definition of a lease put forth by the Accounting Standards Board, even “hire purchase” and “rent to own” schemes qualify as lease agreements.
A common lease available, in terms of which you may acquire your HP printers, is an operating lease. An operating lease, allows the lessee the option to purchase the equipment, return it or upgrade it to newer alternatives at the end of the lease term. These leases are generally more affordable and best when you do not want to take ownership of your HP printers at the end of the lease period. The equipment is financed for the bulk of its value over the lease term so little value is left when the lease has run its term.
A capital lease is equivalent to you taking out a loan to purchase your HP printers. The monthly payment will typically be slightly higher but at the end of the lease term you may buy the equipment outright for a nominal fee, say a R1.00 payment to formalise the sale and change of ownership. If you see value in keeping your HP printers when the lease ends, a capital lease will suit you best.
The Benefits of Leasing
Buying your HP printers or multifunction devices outright will call for a substantial cash outlay. Leasing instead of buying will help with cash flow while giving you the equipment you need to operate your business efficiently.
A lease agreement, with fixed monthly payments, especially if maintenance and consumables are covered, eliminates the possibility of ad hoc, unbudgeted costs making budgeting easy.
The cost of leasing your HP printers can usually be deducted from the company’s taxable income. Outright ownership only allows for annual depreciation to be claimed. Cash can be retained for more critical projects.
Most office equipment lease agreements allow for existing equipment, under a lease, to be easily upgraded at the end of the lease. This allows for up-to-date technology to be brought in in place of what may be obsolete devices, which will become increasingly more expensive to maintain.
Read the Fine Print
It is prudent to understand exactly what the nature of any agreement is before signing it. Be sure to check that there are no clauses in your printer lease that allow for adjustments or escalations to your payment amount during the term of the lease. An automatic renewal clause which places an onus on you to notify the lessor that the lease will not be extended and for you to arrange the return of the equipment should be considered carefully. Leasing your HP printers from a reputable company such as Raydian will ensure that you enter into an honest, fair and ethical printer leasing agreement. Renting your printer from us is a cost-effective way of meeting your printer and multi-functional device requirements. Our rental agreements eliminate the need for capital expenditure and provide the added peace of mind of including a maintenance and service plan. Check out our fantastic promotions before buying. We also provide consumables for all the leading brand products. Call Raydian today for HP printers and most brands of office equipment.