Buying

Checklist of things to consider:

✓ Cost
✓ Depreciation
✓ Maintenance history
✓ Usage frequency
✓ Purpose of purchase
✓ Taxes
✓ Technological changes

Pros of Purchasing Office Equipment Outright

1) As soon as you make that payment, you are in complete control. It’s easy.
The equipment is now yours. You’ve spent the money, you don’t need to think about repeat payments. If you’ve factored in depreciation and lifespan then you know if this option is viable or more importantly will be a good return on investment.

2) The maintenance is up to you.
This ‘pro’ can land under both purchasing and leasing depending on the terms of a lease. Having the maintenance be up to you can either work for you or against you depending on the leasing contract. Sometimes a lease requires you to pay for unnecessary maintenance yearly that may not be necessary, and sometimes the lease requires the company leasing you the equipment to pay for all necessary maintenance. This is definitely worth noting when deciding to lease versus buy.

3) Tax incentives.
As a business owner, you are entitled to fully deduct the cost of some newly purchased assets in the first year.

Leasing

Checklist of things to consider:

✓ Terms of contract
✓ Monthly cost and your budget
✓ Maintenance
✓ Customer service of the business leasing you the product

Pros of Leasing Office Equipment

1) Up-to-date equipment.
Leasing allows you to continuously keep your equipment up-to-date. The producers of printers, copiers, and other tech equipment continuously come out with new products that are better than the one you bought the year before. Leasing allows you to pass the burden of out-of-date technology to the company that is leasing you the equipment.

2) Smaller upfront costs and manageable monthly expenses.
When leasing a product, you often have to pay nothing upfront and your monthly fee is set allowing you to budget accordingly. Also allowing you to invest money in human capital to grow your business.

3) Trial and error – acquiring the best equipment for your business.
Leasing enables you to try products short-term and decide if they are right for your business. There is nothing worse than purchasing a new piece of equipment and realizing that no one in the office uses it and that you need something different.