Finance Options for Photocopiers and Printers
If you are not directly involved in the area of purchasing, procurement or leasing, then knowing which option to choose for obtaining a new photocopier or printer may be daunting, so we thought we’d break it down. We hope this helps a little in making the right choice for your company.
Essentially there are four finance options for purchasing or leasing your next photocopier, MFD or printer when you deal with Highline Office Technology. As we underwrite our own business it allows us more scope and flexibility than a company who only outsources their financing to a bank or a 3rd party leasing company.
A clear advantage of this strategy will directly benefit your business, as there are no administration fees – this can be as high as one month’s rental, so there’s an instant saving! So what are the four finance options, we hear you ask…
This is without a doubt the most popular choice. With this option, your company leases the photocopier or printer for a minimum term contract, usually between 36 and 60 months. The benefits include:
- It stays off your balance sheet
- Not using precious cash flow to buy the equipment
- Fixed costs per month for your business that include service, maintenance, labour AND toners
- Service of your photocopier or printer is included in the contract
- Avail of regular machine upgrades. After all, we know how quickly technology progresses these days!
- The machine is under warranty for the duration of the contract and your business can avail of a swap-out, i.e. if the machine cannot be serviced or fixed, it will be replaced, thereby ensuring no downtime to your business
- Option to purchase the machine outright for a nominal fee at the end of the agreement.
The benefits to your company of purchasing the machine include:
- No fixed monthly outgoing
- Own the equipment
- A service plan is not included but can be added to the purchase of the photocopier or printer. A service plan will include service, toners, maintenance, labour and callouts.
Short Term Rental
The benefits of a short-term rental include:
- Ideal solution for an event, conference, building site or for a short-term project
- Maintenance, service and toner are included in the agreement
- Photocopier or printer is returned upon completion of the project or event
- No long-term obligation
Long Term Rental
This rental is similar to the Operating Lease mentioned above, however, there is no option to purchase the machine. Agreements are generally from 12-24 months. The benefits of this choice include:
- Suitable for start-ups and small businesses that are in expansion mode, where usage is uncertain and can’t be quantified at the beginning of the contract
- This option can be considered for companies that won’t get passed for finance by a bank or 3rd party leasing company as they require a full credit history. Highline Office Technology underwrites its own business and therefore can be more flexible on the options put forward to such companies or to start-up businesses.
As a side note: if you work with a supplier that is outsourcing its financing, your company won’t be able to avail of upgrades at any time and should the equipment fail you will still be liable to repay the finance company. There may not be a warranty for the term of your agreement, so best to check this out before signing on the dotted line.
Original Blog Posted on Highline.ie