There are many considerations when it comes to upgrading or adding a copier/printer to your business.
The easiest way to understand these and make an informed decision would be to just give us a call and we’ll happily discuss any aspect with you.
However we have provided below the answer to many common questions that we are regularly asked. Hopefully this is a useful starting point guide.
At World of Color we offer machines on Purchase, Lease and Short-term hire.
Q. What are the benefits of photocopier leasing?
A. For many businesses the purchase of an important office utility such as a photocopier or printer may be a daunting investment, mainly due to the associated large up front sum but also the prospect of it becoming obsolete in five years time. Leasing a photocopier is the smart alternative with numerous good business-sense advantages.
Q. Does leasing provide any Tax benefits?
A. Leasing can reduce your overall tax bill, as the cost is deductible as a business expense reducing the net cost of leasing the equipment. This factor will help determine whether to rent or lease, rather than buy. If you buy you will be able to claim 40% of the photocopier / printer purchase price against tax in the first year and thereafter claim 25% of the outstanding balance. If you lease you do not have to pay the cost of the photocopier or printer immediately and you may reclaim everything you pay out on a ‘by payment’ basis – monthly, quaterly or annually.
Q. Does Leasing still allow for easy upgrading in the future?
A. Leasing gives plenty of freedom for an easy upgrade path and is a very cost effective option when a high cost purchase is constrained budgetary restraints. Leasing is just a contract between a finance company and a customer, giving the customer use of the equipment on payments of rentals over a period. Should you wish to upgrade before the period has ended then the lender will provide you a balance of the amount outstanding on the original contract. This is then rolled into the new purchase and a new period begins. Obviously you won’t want to lease for longer than you think you’ll be keeping the machine but that is where our help and advice to select the correct model becomes of real value.
Q. Why lease a photocopier rather than purchase?
A. The cash flow and tax relief benefits of leasing provide a very strong case against cash purchase. If you buy equipment outright the capital invested becomes, in effect, tied up in a depreciating asset. Photocopier Leasing on the other hand allows you to save resources for other purposes or opportunities. To be sure of the right decision for your business specifically, speak to your accountant who can advise upon what is best for your company financially.
Q. Who retains the equipment at the end of the photocopier lease?
A. Title to the goods remains with the finance provider, which means the equipment does not show on your company balance sheets and therefore not applicable to the expected value depreciation over a fixed period. This of course gives you the advantage of staying in touch with the latest technology by changing your equipment towards the end of your lease.
Q. Can I rent rather than lease a products?
A. Our most popular method of supply is via a lease but we do offer short and long-term rentals as well as an out-right purchase.