Whether you have just initiated a startup or you are an established business owner, you are aware how a large share of your company’s expenses go towards owning and maintaining office equipment. It is never an easy choice when you have to decide between buying or leasing office supplies but there is another option that is increasingly becoming the preferred choice for a number of entrepreneurs and that is renting-to-own.
Renting-to-own is an attractive payment option aimed at business owners to help manage their expenses better and more efficiently. Below is a comparison between buying and renting-to-own office equipment for business owners to make an informed decision:
UPFRONT COST: The cost of buying printers, copiers, computers, scanners and, shredders etc. can add up very quickly and is a huge investment especially when you have just commenced your startup and you have other fixed recurring expenses including rent and salaries to take care of. Rent-to-own gives you the flexibility to pick a plan to suit your budget while being able to acquire the equipment you need. It is a much smaller amount compared to the upfront cost you would need to shell towards buying equipment.
ACCOUNTABILITY: Rent-to-own option lets you manage your expenses more efficiently as it doesn’t burden your cash flow and easier to budget when spread over a long period of time. Buying on the other hand can put a dent in your monthly expenditure as it may be difficult for you to pay a lump sum in one go.
MAINTENANCE: When you buy equipment, you also have to take into account the expenditures related to monthly/annual maintenance after the stipulated warranty period is over plus the cost of toners, regular wear and tear or even breakdown as machinery can get damaged due to known and unknown errors. You can invest in a service contract but that is also an additional expense and may not cover the cost of perishables. Rent-to-own gives you the flexibility to leave the hassle of regular maintenance to the rental company while you are able to use the equipment at peace.
FINANCING OPTIONS: When you intend to buy office equipment you can always apply for a loan but the growing and fluctuating interest rates may make the purchase a lot more expensive than its actual cost. Rental companies typically offer fixed rates spread over a long period of time so you can account for them in your budget spread over a few months or years without worrying about your expenses taking a big hit.
The above factors will help you in determining costs and evaluating future expenses to make a decision between buying or renting-to-own office equipment. You must still take tax implications, office space, utility and upgradation of equipment into consideration before taking the final call.