Should you purchase outright or take out a lease on a printer? Which option will best suit your company? Most well-established office equipment supply companies offer printer rentals where the unit is rented to a company and is either never owned by the company or is bought for a very small fee at the end of the rental period. These schemes offer an attractive alternative to companies because they are generally very flexible in nature.
The Advantages
On the plus side, a rental agreement for a new printer or multifunctional device does not affect your cash flow as much as an outright purchase. There is no large capital purchase. Budgeting is made easier as the rental is a fixed monthly cost, which may even include maintenance and consumables. This preserves working capital for more strategic objectives such as business expansion. In addition, printer rentals offer a variety of payment plans, which can be tailored to the monthly amount and payment period that suits your business. The rental company can usually get better deals on price than a small business could, keeping their capital cost, and consequently the rental amount, down. They also have superior product knowledge, so they only provide robust, durable, and reliable units to the rental market.
Rentals often give you the option, once the rental period ends, to upgrade the equipment to newer technology or to negotiate a reduced rental rate and retain the device for an additional period. The fact that you do not have to pay the total cash price of the printer upfront allows you to access a higher standard device with more features, better quality, and higher print speeds, for instance, which would be too costly for you to purchase outright. The equipment vendor company usually carries the risks if the equipment breaks down.
Printer rentals also offer tax benefits as, in most instances, the entire rental payment is a deductible cost. Due to the fact that the equipment is not owned, it is not an asset and is not subject to depreciation and is considered an off-balance sheet item. Printer rentals allow for improved control of the total cost of ownership (TCO), as each rented unit has a fixed cost, which is in the budget.
Ad hoc unbudgeted capital expenditure is greatly reduced. Depreciation, currency fluctuations, replacement cycles, changes in interest rates, and other variables need not be considered. Most reputable companies who offer printer rentals provide asset tracking systems as part of their offering, making TCO calculations even simpler while providing additional metrics to improve management of the device. At the end of the agreement, the customer renting the equipment has no responsibility for the device. In other words, they do not have to try and sell or dispose of what is often obsolete equipment. The vendor has to remove the device and dispose of it as they see fit.
The Disadvantages
Rentals will be more expensive than outright cash purchases because the monthly payment includes interest. Wear and tear allowances do not apply to rented equipment and cannot be claimed.
Early termination of rentals often attracts costly penalties. Some agreements include escalation clauses allowing for the monthly cost to increase during the contract period. These escalations need to be accounted and budgeted for or insufficient budget may be provided. Read the agreement carefully and make sure you clearly understand the terms of the agreement, especially with regard to early termination and escalation. Some printer rental agreements also have automatic renewal clauses which need to be tracked to ensure that an extension of the agreement is in fact desired and required. Finally, rented printers remain the property of the vendor and are not the property of the company renting them.
Printer Rentals: Who Do I Talk To?
Reputable and respected office equipment suppliers like Raydian provide a range of office equipment and printer rentals at competitive monthly payments that will suit most business requirements. At Raydian, we are aware that acquiring a printer or multifunction device is a significant capital expense for many businesses. Choosing to rent multifunction devices as opposed to buying them outright will save on negative cash flow but still allow the acquisition of the office equipment needed to run a modern business competitively.
Renting your device from Raydian represents a cost-effective way of meeting your business requirements while reducing the need for initial capital expenditure. Flexible pricing, tailored to your business’ specific needs, is available to suit most requirements. Looking for office equipment and printer rentals? Contact Raydian today.
