Recent reports in the industry shows that leasing is becoming a very popular among business owners. In this article, we explore the reasons why this is so.
In my most recent article about the printer industry, I discussed three main options currently available to businesses who want access to printers for office use. One of the options I outlined was leasing. In recent times the use of leasing services in the industry has increased and seems to be the preferred choice for many businesses, especially the small enterprises.
Due to this fact, I have decided to do this article, looking into why this option is growing lately.
Financial Reasons
The first and important reason for the growing trend of leasing in the printer industry can be attributed largely to financial reasons. Buying a printer involves providing a relative large initial capital investment. Though leasing costs more in the long run, most small businesses find it more prudent compared to buying outright. Leasing free some extra cash as the business is able to postpone the payment of the entire printer cost.
This has implications in terms of tax and budget of the business. The lessee is able reclaim everything paid for in monthly payment basis or whatever the payment agreement says.
Technical Reason
Usually, a lease may last for a period of 3 to 5 years. During that period the machine will depreciate and grow obsolete. When that happens within leasing agreement, the lessee does not have re-enter into another lease in order enjoy the benefits of new technologies that has been introduced by the industry. This is because everything is covered by the lease agreement.
Additionally, the lessee enjoys full support from the dealer and all upgrades will be covered by the lessor/dealer. This frees up the lessee’s mind so he or she can focus on their core business of providing a service or selling a product.
Flexibility Reason
The leasing agreement provides flexible payment terms for the lessee. The lessee has the benefit of negotiating for various terms which include the provision of cartridges, upgrades, technical support and so on. This allows the lessee to be productive at his or her and ultimately increasing return on investment.
Technology Reason
The printer industry has undergone dramatic changes, with the incorporation of digital capabilities. More printer manufacturers are adding new technologies to their offerings. Many printers now come in the form of copiers, fax and scan. Some even have the availability of emails integrated into them. These multifunctional capabilities mean that the lessee will continue to enjoy new technologies within the duration of the lease and will not need to re-negotiate the terms of the lease.
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