The act of renting an asset vs. buying an asset is always a challenging decision for a company to make. You don't really own the machine when you lease it. You rent it only for a defined period of time. You may relate it with living in a house. While it follows the same concept, there several benefits a business has when renting rather than getting a photocopier for sale.
When you buy a photocopier, it instantly causes a spike in the overall expenditure. Renting on the other hand, enables it in installments. A marginal rise in spending is typically a better method as opposed to an upfront substantial expense. So, it is wise to rent the copier, as the expenses in the long run, will be higher than the original cost of it.
The value of such machines tends to depreciate over time, and so, renting is definitely beneficial to your firm. While most people prefer owning a device, others prefer renting, as they don’t have to worry about the drop in value. One reason behind this amongst many, is that every year a new model is released, which further lowers the need for previous models.
Some rental arrangements include a servicing arrangement. When you make an outright purchase, servicing is a crucial element that businesses have to account for regularly. Renting allows you to completely avoid the cost of servicing, as sometimes, it is already a part of the package.
If you rent it, you will not have to deal with a machine that will lose value over time. There will be more credit available and zero issues of maintenance. With a rented copier, the business can conveniently update the facilities as well.
All things considered; most companies would more often than not choose to rent a copier. Although there are several instances where a business wants to own its equipment outright, there are numerous advantages to renting one. You no longer have to be worried about depreciating asset costs, and the liability associated with it. Your cash inflow will also be improved. Further, it eliminates all the maintenance woes.