Why Lease a Copier as a Startup Business ?

It seems as if the bills will never end when you are launching a new business venture. Most new ventures do not make money immediately and it's difficult to keep paying bills when you don't have money coming in the door. One area in which you can cut down on the large start-up costs is by leasing office equipment and peripherals such as phones or computer systems. The three main benefits to new companies from a financial standpoint are as follows:

Tax Advantages

Leasing may provide an unexpected tax benefit. Usually, 100 percent of the lease can be deducted as a business expense. Bank loans are not eligible for the same benefits.

No Credit? No Problem

The hardest part of opening your business is securing the necessary funding. Leasing equipment can help you build credit while ensuring necessary cash flow for growth.

Flexibility

A lease allows you to decide how long you want equipment in your shop and gives you the opportunity to buy machinery at any time. Don't get locked into technology that could be rendered obsolete.
If you're just starting out, consider partnering up with JJ Bender or our sister company Graphic Savings Group.

Cash Flow Considerations on an Equipment Lease

You have to consider cash flow when you are considering a copier lease. A lease is often the best way to mitigate a tight cash flow in the startup phase of your business. There might just be even more leeway than you think in a lease.

Standard Lease

A standard lease typically requires the first and last payment up front, and then equal payments for the term of the lease. The lease term is likely anywhere from 2 to 5 years.

Step Up Lease

A step up lease is sometimes structured around higher priced equipment, such as digital copiers or printers. Payments begin at a very low level and then step up over the course of the lease to a higher, regular payment. The step up lease is designed to help startups receive the latest equipment without adversely impacting cash flow.

Deferred Payment Lease

A deferred payment lease usually offers the lessee a period of time, typically 90 days, before the second payment is due. Therefore, a copier lease might featured a deferred payment to allow a startup business to generate revenue.

There are a variety of options at the end of each of these leases. If you're considering an equipment lease, consider JJ Bender.

Leasing a Copier as a Seasonal Business

The goal of every seasonal business owner is to ensure that as many variables as possible are eliminated. One of the best places to begin with is your funding source.

We know one jeweler, who only has two profitable months a year. But you should see those two months. The challenges faced by business owners with seasonal demand are unique. How do you keep track of costs relative to revenue, when one is consistent and the other is erratic? The answer may be in how you structure your next lease.

Many companies are eligible for flexible payment schedules, that are arranged in accordance with product demand. Now most companies will not have a fiscal year (hopefully) like our friend the jeweler; however, corporations will have stronger sales periods based on holidays or the corporate calendar. Leasing equipment can help your business manage cash flow, regardless of the season. Leasing or renting a copier in the short-term could provide more stability in the long-term. If you're considering leasing a copier, please consider JJ Bender.

Copier leasing

Before you sign the dotted line, ask for a break down on the numbers of your copier and copier lease. You should know exactly what you are paying and at what rate. Often, a manufacturer might knock down the price of a digital press because the interest you'll be paying on the attached lease will bring in significantly more money. Always ask for the following when negotiating a lease.

What is the Interest Rate?

How much are your paying for your copier and how much are you paying in interest? Ultimately, a lease only makes sense if the costs are appropriate for the equipment you are getting.

What's the Buyout Option?

You should know exactly what happens to your machine at the end of the lease. Many leases will return the equipment to a dealer or manufacturer by default unless you know to ask about buyout options. Decide if you'll want the equipment at the end of your lease terms and what you would be willing to pay for it. Then, negotiate accordingly.

Length and Exact Terms of the Lease

Exactly how long is your lease and what is your payment schedule. Get a breakdown in writing, and find what the penalties are for defaulting or missing a payment to prepare for the worst case scenario.

Consider alternatives

A dealer or manufacturer may not be able to offer you the best rate, in fact, it's likely in their interest to offer you a higher rate. That's why you should always get a competitve quote. You might be suprised at how much more you would have paid for equipment and how much you can save.

When looking at leasing a copier, consider JJ Bender as one of your options.

Leasing a Copier

You have worked hard for your money, perhaps it is time your money put in some work for you. In fact, your money might serve you best if you choose to lease equipment. Here are a few of the benefits of leasing a copier.

Improve Your Cash Flow

Your money is not married to your equipment. That means you have cash on hand for expansion & marketing opportunities, or in a pinch.

Upgrade with the Times

A lease allows you to continually upgrade your fleet or single machine. Lease the latest equipment and wait for the brand new machines to come down in price.

Hold Credit in Reserve

You will retain a line of credit for short-term financing or potential deals.

Tax Benefits

Contrary to loan payments; lease payments are completely tax deductible.
If you're considering leasing equipment, we hope you'll contact us at JJ Bender, or at our sister company, Graphic Savings Group, which specializes in cash flow management and lease consulting.