Should You Lease or Buy Office Equipment?

There are a number of ways to purchase office equipment, including copiers and printers.  You can:

  • Purchase outright.
  • Finance a purchase.
  • Rent.
  • Lease.

All have their advantages and disadvantages.  Whichever the case, consult your financial adviser (if you have one) before making any long-term decisions. Let’s explore each briefly:

  • Purchasing outright means you have to use your cash.  If you have it, it might be the best option.
  • Financing the purchase means you are taking out a loan to buy the product.  As with the first choice, this also means you have a capital piece of equipment to consider as a part of your inventory.
  • Rental is just that–a monthly or quarterly fee to use a machine that you give back at the end without any value.
  • Leasing is probably the best option–you pay out regular payments with some kind of service contract attached or rolled in.  At the end of the lease it has a value you can either use as a trade-in or to refinance and continue the lease.

Whatever you choose to do, it should fit your business and tax planning.

The Business Farmer