Leasing Costs More: Why Are They Popular?
The technology industry has been expanding faster and faster, and leasing allows business owners to keep step with the latest technological advances. Another reason it has become popular is due to overhead costs. A startup business cannot afford to furnish their office with $10,000 copiers without breaking their budget. The long-term lease lets them stay competitive with corporate moguls who have limitless funding. State-of-the-art equipment becomes accessible without paying top dollar. In addition, many lease companies realize that startup businesses need flexibility, so they make the payments lower to increase over a period of time. Leasing companies call this a step lease, which is more flexible than being locked into a rigid system.
You never want your large scale investment to become an alarming loss, and leasing helps you to avoid outdated equipment that constantly needs repairs. In addition, your available credit will not become impacted when you choose to lease your copier, and in most cases, the company does not require that you have collateral. However, when signing a lease, you should beware of the fees that include: documentation fees, commitment fees, site inspection fees and lien search fees. The company often charges for insurance as well.