Unlocking the Power of FMV Leasing: The Benefits of Leasing Your Office Copier
July 17th, 2023 by admin
Leasing office copiers through Fair Market Value (FMV) leasing is a popular method that comes with numerous advantages. In this blog, we will explore the benefits of FMV leasing for office copiers and discuss a few important considerations to keep in mind.
Benefits of Leasing:
- Lower upfront costs: FMV leasing allows you to acquire an office copier without a hefty upfront investment. Instead of purchasing the equipment outright, you can make regular lease payments that are typically more affordable than the full purchase cost.
- Improved cash flow: By choosing FMV leasing, you can preserve your working capital and maintain a healthier cash flow. This financial flexibility enables you to allocate your capital to other critical areas of your business operations.
- Access to advanced technology: Office copiers and equipment continuously evolve with new features, enhanced efficiency, and improved security. FMV leasing grants you the opportunity to upgrade to newer models at the end of your lease term without incurring the full cost of purchasing a new copier.
- Flexibility and scalability: FMV leases offer flexibility in terms of lease term extensions, equipment upgrades or additions, and lease termination options. This scalability ensures that your copier usage aligns with your changing business demands.
- Tax benefits: In many cases, FMV lease payments can be treated as operating expenses, making them typically tax-deductible. This can result in significant tax benefits for your business, effectively reducing your overall tax liability.
- Maintenance and support: Regularly upgrading your equipment through leasing means you'll experience fewer repair issues compared to using older machines. This results in increased uptime and allows you to focus on your core business operations while ensuring that your copier remains in good working condition.
- Potential buyout options: At the end of the lease term, FMV leasing often provides you with the option to purchase the copier at its fair market value. This can be advantageous as you may be able to acquire the equipment at a favorable price considering its depreciated value.
Potential Downsides of Leasing:
- Rollover Clauses: Some FMV leases automatically renew until you return or buy the equipment, potentially adding extra payments to your obligation. To avoid this, carefully review your lease for the time requirements to submit a letter of intent to terminate the lease.
- Fees: Certain lease companies require being named Loss Payee on your commercial insurance policy, which can result in additional fees unless you provide proof of your own coverage. Ensure you address this requirement to avoid unnecessary expenses.
- Evaluating equipment fit: Prior to the lease expiration, it's crucial to assess whether the copier still meets your current needs. Printing volumes and required features may have changed over time, and upgrading to the newest equipment may not always be the most cost-effective solution.
Leasing office copiers through FMV leasing offers numerous benefits, including lower upfront costs, improved cash flow, access to advanced technology, flexibility, tax advantages, maintenance support, and potential buyout options. However, it's essential to be aware of potential downsides such as rollover clauses, fees, and the importance of evaluating equipment fit.
If you need assistance in reviewing your printer fleet or navigating a lease agreement, we are here to help. Contact us today at 888.700.0237 or visit our website to schedule a complimentary review and recommendation. Let us guide you towards the best leasing options for your business needs.
Posted in: office copier and printer