I’ve heard many times that it’s better to own something than to rent it. But I’m here to tell you that this statement isn’t entirely true. It all depends on what it is your thinking about renting or buying.
- Upgrading Office Equipment
The average service life of a copier/printer is 5 years. However, a newer, more efficient version is available after around 2 years. Now if you bought your equipment, you’ll still have 3 years to go before you can purchase a new one but rental agreements generally allow for upgrades. This will ensure you have the latest office equipment at all times without paying a cent extra. In this instance, it would be better to rent.
- Capital Investment
Cash flow is the most vital consideration when acquiring office equipment as this can be a major expense for small and medium-sized businesses. While buying is beneficial in the sense that you can cover the cost as soon as possible, renting allows you to free up your cash flow and use it towards growing your business. You will, however, spend more money in the long run, when you rent office equipment. If you have the money to spend, buying is a great option but if you can’t afford to take a knock, rather rent.
- Replacement due to theft or damage
Insurance is a vital part of any business but adding office equipment can increase your premium excessively. When you purchase office equipment, the onus is on you to replace it in the event of theft or damage. When you sign a rental agreement, you can negotiate the terms of your contract to include insurance.
- Tax Implications
In general, office equipment is a depreciating asset that can benefit your business depending if you rent or buy it. Rented equipment is 100% tax deductible while purchased equipment will be depreciated at a specific rate over its life.
When taking into consideration the elements mentioned above, it is clear that renting office equipment is more beneficial for small and medium businesses. If you are in need of printers, copiers or switchboard (sales or rentals and maintenance) in the Middelburg or Gauteng area, get in touch with DCJ Tech today.