Whether you’re starting a business or you’re looking at a big chance of expanding, buying office equipment will be a part of that endeavor. Buying office supplies can be very expensive but who can’t resist getting them brand new. For those wading on a tight budget, leasing them instead may be a smarter move.
Businesses have needs and providing the right people to do the job – and the right equipment – can help in its growth and future. So how should you go about buying your equipment? Here are a couple of things to help you decide.
Why Should I Buy?
You owe the equipment you buy and they add up to your assets. Task breaks are present for small businesses that have looked into investing office equipment. Also, you get paid for the depreciation of that bought equipment. Ownership is the biggest advantage buying equipment can provide you.
Buying doesn’t slack you off any worry. When buying equipment, you take the responsibility of ensuring that it works and will work for a long time. Maintenance of computer, printers, and upgrade of software applications will cost you money. It can bite on your credit. Charging equipment can shorten your credit line. Also, down payments will be needed when purchasing this equipment – that means cashing out more.
Why Should I Lease?
Leasing your office supplies will give you flexibility, but overtime could cost a lot. It’s flexible because you can easily replace obsolete equipment like printers and computers. In some cases tax deductions are present for lease cost. The lease payment is deducted as part of business expenses on tax returns, reducing the lease cost. There is little or no down payment in most cases, giving business owners with a small budget a reason to lease.
Though leasing is more budget-friendly, it won’t be for the long haul. You will be spending more leases over something when you could have just bought it the first place. Once you lease equipment, you’ll have to abide by the agreements made. Sometimes, you might even be leasing it for a long time and may never own it. The lack of ownership and overall cost is something to think about when leasing.
I’m Still Undecided
To decide whether buying or leasing particular business equipment, there are factors that will be needed for consideration. The net cost of that asset is one. Determine the equipment’s approximate net cost including possible values for tax break and its resalable value.
Deciding whether to buy or lease is to know which path is more cost effective. Calculate carefully known costs and consider future possibilities of the product becoming resalable or not. Take into account durability of equipment and ask sales attendant or owners productivity impacts.