Business printer rentals are an alternative to buying a printer outright whether on finance or cash. There are companies offering rentals on terms as short as a day. Most companies offer units on longer-term leases, however. Renting a printer can be a cost-effective and flexible route to meeting a company’s office requirements. Rentals assist companies with cash flow and make budgeting easier. Rental agreements reduce the need for initial capital expenditure and usually include maintenance and service plans, ensuring ongoing peace of mind.
Working capital can be preserved for alternative purchases or projects. The cost of consumables and maintenance can be made part of the monthly payment. Office equipment on lease often allows for upgrades when better or more cost-effective technology becomes available. This way, equipment can be kept current and the end-user does not get stuck with obsolete equipment. These benefits have made photocopier leases the industry standard for photocopier procurement.
Printer Rentals: the Pros and Cons for Companies
As already mentioned, working capital preservation is a key benefit for many businesses. Photocopiers and multifunction office printers are typically replaced every 36 to 72 months. Technology changes relatively rapidly and the devices become more and more costly to maintain as they get older. The projected replacement cycle leads to companies being required to prepare for ad hoc cash outflows at intermittent times in the business cycle. Renting photocopiers and printers mitigates this, allowing for an even, predictable monthly expense regime and easy budgeting. Cash can be saved for more critical business requirements.
Business printer rentals allow for better control of the total cost of ownership of office devices. Each month, a fixed value is budgeted and paid for, limiting the occurrence of unbudgeted for cash demands. Outright cash purchases make the accurate calculation of the total cost of ownership far more difficult as depreciation, currency fluctuations, replacement cycles, and other such variables need to be accounted for.
Renting allows companies to budget accurately for the rental term of the agreement. Most well-established companies offering rental agreements provide sophisticated asset tracking systems with their offering. This is particularly helpful to companies who rent large quantities of office machinery, which is employed at a number of different sites. Businesses can accurately track, monitor, and maintain all their rented office equipment.
Rentals allow for a great deal of flexibility for companies. Most agreements allow for early upgrades and the addition of new technology as it becomes available. The addition of more capacity in the event of business growth during the rental period is usually simple and quick to deploy. Leases do not erode a business’ existing credit capacity. These transactions are considered “off-balance-sheet financing” as the asset being rented is owned by the company renting out the equipment. Business printer rentals are therefore a fully deductible expense. Traditional lines of credit can be retained for stock purchases, business expansion, or other operational requirements.
Photocopiers, office printers, and other electronic equipment depreciate and deteriorate over time. Rental schemes offered by reputable solution providers will offer some form of life cycle tracking or monitoring. These systems ensure that the maximum value is derived from the equipment by ensuring that it is upgraded at the optimum time in its lifecycle. Once the asset completes its useful, cost-effective life (reaching a point where service and maintenance costs exceed the cost of a new device), it is flagged for replacement.
Business Printer Rentals: Do You Qualify?
Fixed-term business printer rentals are usually for 12, 24, 36, 48, 60, or sometimes even 72 months, with the 36 and 60 month periods being the most popular lease terms. So how difficult is it to rent an office printer?
On submission of a rental credit application, most companies will require the following:
- A copy of the company registration documents
- A copy of the company letterhead
- Proof of the company bank account (copy of a cancelled cheque or a bank certified letter)
- Copies of the ID documents of shareholders, directors, and/or members
- Audited financial statements or three months’ bank statements
Reputable companies such as Raydian will be able to provide printer rentals at competitive prices to suit any company requirement. Contact us today for more information.