There are two main options for business equipment leasing — operating leases and capital leases.
Operating LeasesTypically, businesses choose operating leases, which are also known as fair market value leases, because they offer lower monthly payments than through capital leases. An operating lease for a copier or printer means the business is essentially renting the piece of equipment — it never gets added as an asset to the company’s balance sheet.
When the lease terminates, the company has the option to buy the copier but the buyout cost is calculated by the leasing company based on terms set out in the agreement, plus depreciation, wear and tear, new technology, and market demand.
An operating leases make the most sense for a company that does not want the bother of owning a copier or printer, and would prefer to continually lease recent models.
Capital LeasesCapital leases are usually not the right choice for most businesses. A capital lease for a piece of business equipment can be compared to a loan rather than a rental of the equipment.
The interest and principal paid goes toward the cost of the copier and it is added to the company’s balance sheet. The monthly rate for a capital lease is higher, because 100 percent of the cost of the equipment is being financed. Because the buyout cost is stipulated in the contract at the point of signing. a capital lease provides an advantage for businesses who want to eventually purchase. Capital leases are an attractive option for businesses that want to purchase and own a printer or copier, but don't want to put out the purchase price up front.
Printerworks’ volume with leading copier and printer manufacturers allows us to offer exceptional pricing. Our local warehouse and knowledgable staff provide prompt and professional service.
If you would like to learn more about Printerworks’ leasing options, please contact us: (403) 252-6543