Many companies today opt to rent office equipment instead of buying new devices. This is due to several reasons, such as the ability to move or consolidate devices between departments, as well as the cost savings that come from leasing rather than purchasing.
When a company decides to lease, it will have to sign a rental agreement with the equipment provider that covers use of the device for a set period. This may include service, warranty, and training. In some cases, a lease can also be considered a tax-deductible business expense.
There are a few different types of equipment leasing options, including fair market value (FMV) and true leases. FMV leases are a great option for customers who want to have lower monthly payments and are looking for the convenience of being able to upgrade to new equipment.
Another type of lease that is becoming popular with some customers is a dollar-out lease. This allows the customer to purchase the equipment at the end of the term for a $1. This type of lease can be useful for businesses that are still unsure if they want to own the equipment outright at the end of their lease term.
Some businesses are hesitant to purchase a new machine because of the high upfront costs. However, a lot of these companies can benefit from leasing and gaining equity in the piece of equipment that they own.
One of the most popular benefits of a lease is that it is often much easier to get approved for than traditional loans from the bank. A lease finance partner like GreatAmerica can make credit decisions quickly and limit the paperwork required for approval.
This can help to avoid the long, cumbersome process of obtaining a bank loan for equipment. A lease also eliminates the risk of borrowing money against your property and can help to free up valuable capital in your company’s budget that could be used for other important business functions.
Other benefits of leasing include the flexibility to change or cancel the lease before the end of its term, the ease of returning equipment, and the fact that it can be done on a monthly basis. These advantages can be especially attractive to small businesses that cannot afford the large initial investment of a new machine.
Some equipment providers also offer maintenance agreements that can be purchased with the device. This helps to keep your costs down by ensuring that your device stays in good condition, and that you can get regular preventative maintenance to reduce downtime.
Besides offering a lower cost alternative to buying new equipment, an office equipment rental can also be an excellent way to increase your brand’s visibility. This can help to establish your company as an industry leader in its field, while making it easy for consumers to find you when they are ready to start renting.
A well-run office equipment rental business can be a lucrative venture for entrepreneurs and business owners. While it can take a considerable amount of time and effort to start up and maintain, the rewards are worth it in the long run.