A new business endeavor isn’t easy since it requires a lot of strategic planning, labor, and lots of money. One should be wary and apply as many cost-effective ideas as possible to make your business’s first period less of a financial strain. For instance, when setting up an office, all the technical apparatuses such as photocopiers can result in a substantial expense if purchased outright. A perfect alternative to this is copier leasing since it could lower your cost, thus allowing you to start your new company without paying for tremendously expensive equipment.
What is Leasing
Leasing is through which a business or an individual obtains vehicles, equipment, and machinery for use and pays for the services on a rental basis. It can also be understood as a financial medium that allows the business or individual to utilize a tangible asset without owning it. The lessor is the one who owns the asset, while the lessee is the one who leases. There are two main types of lease, the operating/general lease, and the financing/capital lease. The former is a short-term lease, and the lessor is the one in charge of the risk and returns, while the latter is a long-term lease, and the lessee is the one responsible.
A Guide On How to Lease Copiers for Start-ups
Copier leasing in Augusta has grown into a very prevalent option for fresh businesses. It’s a well-renowned fact that copiers are necessary for the offices, but at the same time, they can cost so much and swallow up your budget without you realizing it.
To guide you in this copier leasing services venture, here is a list of timely steps to follow for assuring you are making the right choice
Determine your requirements
Firstly, you need to know your requirements, like if your newly established company needs a huge amount of volume duplication or prints, then there is an ample variety of machines that will tend to those demands. The business only needs to focus on smaller prints, and you will know which copier leasing services will satisfy your needs.
Consult and explore
Once you know what you need, the next step would be to explore the copier leasing services available in your area. You can research by visiting their social media and website, or you can even visit their actual store. Take, for instance, there is a copier leasing service in Augusta. You can check that contains all the necessary information and inquiries about copier leasing, and they also operate in approximately 30 service areas in Augusta.
Take into account the time-based rental options.
- Short-term lease
These are costlier than the long-term contracts, but they are considered a much safer course when you are undecided of the extent of usage you will utilize. Accordingly, you can assess your usage and either continue or upgrade the contract. Another term for this lease is an operating lease. This kind of rental option is cancellable before the lease period expiry. The lessor or owner bears all the responsibility and risks associated with the asset.
- Long-term lease
These are less costly and have the potential to do an upgrade easily. Leasing makes sure you’re up to date with the latest technology, and that is one downside in buying the equipment outright. This lease is also called a capital lease and is non-cancellable. Here, the lessee holds responsibility for the maintenance, insurance, and taxes associated with the asset.
For a start-up company, there is a dire need for consideration when it comes to the financial position; thus, decisions made should aim to increase productivity and without having debts. Leasing is way better than buying since it averts your working capital for other necessary business expenses instead of vastly expensive outright equipment purchases. Also, it helps you be on track with the latest advances in equipment and technology. Last but not least, leasing will provide you with future tax benefits.