TL;DR
- Flexibility and Financial Benefits: Leasing offers access to the latest technology with manageable payments and tax deductions.
- Low Upfront Costs: Little or no money down required.
- Budget Management: Fixed payments unaffected by interest rate changes, helping with accurate financial planning.
- Tax Efficiency: Lease payments are deductible as business expenses, reducing overall tax bills.
- Easy Upgrades: Upgrade to new technology during or at the end of the lease without significant upfront costs.
- Capital Preservation: Use capital for business growth rather than tying it up in depreciating assets.
- Flexible Lease Terms: Choose contract lengths that balance functionality and monthly payments, typically from 36 to 48 months.
- Improved ROI: Increased productivity from new equipment can offset lease costs.
Companies are constantly evolving, with technology playing a crucial role. While digital workflows are increasingly common among architectural, engineering, and construction firms and their project partners, the need for large paper construction plans remains significant.
However, upgrading wide-format technology can be a significant investment, and many small to medium-sized companies face budget constraints and the challenge of managing cash flow effectively.
Therefore, leasing or renting equipment, such as plotters, is an attractive and viable option for many AEC companies. It offers flexibility, financial benefits, and access to the latest technology.
"It is well accepted that a plotter or wide-format MFP system is not a business asset that appreciates: This type of technology depreciates faster than the vast majority of purchased assets. So, save purchases for assets that either appreciate or depreciate less."
Leasing vs. Purchasing
Ultimately, leasing allows you to get the new technology now and pay for it over time. Here are some specific benefits of leasing that many companies use to their advantage:
Budgeting
Many businesses earn revenue over time, so paying as you use it makes sense. Why pay out in one lump sum when, with leasing, you can make small, fixed, manageable payments?
Lease a plotter and pay for the portion that you are using at the time. Payments made throughout a lease arrangement are unaffected by changes in interest rates; you can, therefore, accurately plan for lease payments in advance.
Financial professionals and business owners can forecast cash flow by comparing the recurring cost of the leased devices with projected revenue and profits generated by using the equipment during specific projects and standard business operations.
Tax Efficiency
Leasing can reduce your overall tax bill, as the cost is deductible as a business expense, reducing the net cost of leasing the equipment. This factor will help determine whether to rent or lease rather than buy. If you lease a plotter, you do not have to pay the cost immediately, and you may reclaim everything you pay out on a 'by payment' basis - monthly, quarterly, or annually.
Upgrading Technology
As it is well accepted, a plotter or wide-format MFP system is not a business asset that appreciates. This type of technology depreciates faster than the vast majority of purchased assets. So, save purchases for assets that either appreciate or depreciate less.
Leasing allows up-to-date office equipment to be installed as required, less affected by budget restraints. Large-format printer leasing improves cash flow and creates a hedge against inflation, depreciation, and obsolescence. Importantly, it allows you to take advantage of technology improvements at a time of your choosing and a reasonable cost.
By contrast, a business that owns its office equipment can only upgrade by reinvesting and disposing of the existing asset.
Capital
It makes sense to use capital for expansion or appreciating business purchases. Leasing office technology preserves precious resources for these purposes and other business opportunities. Furthermore, you can maintain your existing bank lines and optimize your use of commercial credit sources.
Flexible Payment
You can choose the option that best fits your leasing arrangement. Typically, leases are written for 36 or 48 months, giving immediate access to the printing equipment you need, the necessary speed, and the right multi-functional technology via payments your business can handle without the large deposit generally associated with an outright purchase.
Return on Investment (ROI)
Let the new equipment provide you with a return. The reason for a new wide-format system is to increase productivity; with leasing, you can use the cost savings and increased production ROI to make periodic payments.
FAQs about Leasing Plotters
Who retains the equipment at the end of the plotter lease?
The title to the goods remains with the finance provider, meaning the equipment does not show on your company balance sheets and is, therefore, not applicable to the expected value depreciation over a fixed period. Of course, this gives you the advantage of staying in touch with the latest technology by changing your equipment towards the end of your lease.
Can we upgrade before the wide-format printer lease agreement expires?
Yes. An equipment leasing organization allows businesses to keep up with technological changes, should your needs change during or at the end of your lease period. This situation is generally due to a customer's expansion of business and changing needs.
Why should I choose large-format equipment leasing?
All sectors of the US economy take advantage of business equipment leasing; it is the most popular choice for small businesses that need a mid-to-high volume plotter or multi-function system.
This model is how large multinational organizations prefer to keep tighter control of their finances and enjoy the tax efficiency and upgrade opportunities of a lease agreement over purchasing.
How does plotter leasing work in practice?
Leasing is a contract between a finance company and a customer, giving the customer use of the equipment on rental payments over a period. When you lease a printer for office use, you make regular (usually monthly) payments instead of a large capital outlay.
Why lease a printer rather than purchase one?
The leasing's cash flow and tax relief benefits provide a strong case against cash purchases. If you buy equipment outright, the capital invested becomes, in effect, tied up in a depreciating asset.
Plotter leasing, on the other hand, allows you to save resources for other purposes or opportunities. To be sure of the right decision for your business specifically, speak to your accountant, who can advise upon what is best for your company financially.
Plotter Lease Cost Summary
Leasing is an excellent method for upgrading your technology without needing substantial capital upfront:
- Pay little or no money down in most cases.
- Flexible – choose the contract length that best balances functionality and monthly payment.
- Upgrade option – most leases allow you to trade up to new, better technology at the end of the lease.
- Savings – besides eliminating capital expenses, leasing allows you to get extra tax benefits.
What other questions do you have about equipment leasing? Leave them in the comments below.