What is Office Equipment Leasing?
Office equipment leasing is a loan in which the lender buys and owns equipment and then rents it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value (FMV) or a fixed or predetermined amount, continue leasing, lease new equipment, or return it.
What are the benefits of leasing office equipment?
There are many benefits to leasing equipment for your office. Some advantages include:
Increased financial flexibility for your business
Other lines of credit that a business may have will not be tied up when leasing. This means that a business has room to breathe financially, and they can use the extra funds for other needs without having to seek more financing. Leased office equipment is paid back monthly as the equipment is being used to effectively generate revenue for your business.
Tax deductions and write-offs for your business
Office equipment leasing is a taxable write off for your company; since the equipment is only leased and not the property of the business, the business is not liable for taxes on the items. This plays a big role with businesses looking to keep taxes owed to a minimum, freeing up more revenue to invest in some aspect of the business.
Keeps your business up-to-date with technology
As technology is advancing, so is the office equipment needed. Avoiding obsolete technology is a regular concern for any company; and with advancements in technology, obsolescence happens extremely fast leaving your business with expensive, outdated equipment.
Minimum of productivity lost due to the breakdowns
Another advantage to leasing office equipment is the easy replacement in the event of a malfunction. In general, an equipment leasing company will schedule regular maintenance of leased machinery as part of the basic leasing contract. If something were to stop working during that time, and it is not repairable on site, the leasing company usually will deliver a replacement at no extra cost to the leaser.
Boost moral and productivity when leasing office equipment
Leasing allows you to afford more. While you might not be able to afford to purchase those pricey ergonomic chairs your employees are asking for, you may be able to lease them. Better furniture and equipment can create a more professional image and boost morale and productivity.
What size of business should consider office equipment leasing?
Any business at any stage of development. For start-up businesses with no revenues, small ticket leases, (those of $100,000 or less), are feasible on the personal credit of the founders or owners, if they are willing to make the monthly payments.
What types of office equipment can I lease?
Leasing is available from fax machines to workstations.
Here is just a few pieces of equipment you can lease:
- Facsimile equipment
- File cabinets
- Furniture (chairs, desks, etc.)
- Labeling machines
- Postage machines
- Video conferencing equip
- Work stations
- Computer Equipment Leasing
How long can I lease my office equipment for?
The most common terms in leased contracts are 24, 36 and 48 months. Connect Lease Corporation offers specialized terms to fit your business needs; however, the industry standard is a 2-year, 3-year or 4-year lease.
Different types of equipment will dictate different leases, for example, any equipment that will be out of date and no longer useful after 3 years will not have a 4-year term option.
The longer the lease term on office equipment, the smaller the monthly payment is, so consider how long you will use the equipment and how the monthly payment fits into your budget.
As with all leasing terms you have the option to buy your office equipment at the end of the lease, if you wish.
Apply today. It’s fast, easy and convenient.
To apply for a lease, use our online application, or simply call us at 1-(877) 860-4140.
Alternatively, use the contact form below to have one of our leasing agents contact you to help you find an equipment leasing solution for your company.