Acquiring equipment is one of the main investments when setting up a company. The main choice is between either renting (leasing) or buying, so which is best?

Choosing between leasing or buying electronic equipment such as printers and copiers, etc. depends on a lot on the type of company you have, why you need the equipment, and for how long your business will need it.

How to choose between renting or buying

Before choosing whether to rent or buy, you need to evaluate a series of questions: what type of financial commitment will you need if you lease? How long will you need the equipment? Is there an option to buy the equipment at the end of the lease? Do you need insurance? Is it possible to terminate the contract in advance and replace the leased equipment with a more modern version?

To help you answer these questions and choose between leasing or buying, you need to know the advantages and disadvantages of the two options. We asked experts in photocopier leasing in Reading about the benefits, and any drawbacks, of leasing or purchasing such equipment.

Advantages and disadvantages of equipment leasing

Choosing to lease makes it easier to have a company with updated and competitive equipment. Computers and other types of technological devices such as printers and photocopiers, scanners, etc. become obsolete in a short time.

With leasing, you transfer the financial cost of obsolescence to the owner. For example, if you lease a copier for two years when the term expires, you can lease a newer, faster and cheaper version of the equipment.

The lease also offers the company the possibility of having more sophisticated equipment, without the need to invest large amounts of capital, and allows small businesses to compete with larger companies.

With leasing, you will have fixed monthly expenses that will help control your budget more efficiently. In addition, there is no need to make a large investment or take on debt, which allows you to acquire new equipment without the need for a large financial reserve.

On the other hand, the leasing of equipment will almost always be more expensive in the long term than the purchase of the same equipment, since you will pay monthly fees that will not give you the possession of the asset. In addition, you will be subject to a contract which means that if you agree to a term longer than desired, you will continue to pay for equipment that is outdated or is not necessary.

Advantages and disadvantages when buying equipment

Buying equipment is easy: you decide what, when and how to buy. Leasing requires at least one contract. Suppliers can also demand financial guarantees and set limits on how the equipment can be used.

However, when you buy, you might be able to use the equipment as you wish, without restrictions, but you will also shoulder the responsibility for all maintenance, repairs and consumables required for normal operation.

Also, another disadvantage of buying equipment is the capital needed to acquire it and the risk of being left with obsolete equipment, especially when it comes to electronic equipment such as copiers, printers and computers which are updated frequently, because the company does not have the capacity to make new capital investment to update the equipment as often.