Should I Purchase or Lease a New Binding Machine?
When it comes to business documents or client representation, you want them to look as professional as they can be. And the most crucial factor in making a document or presentation more professional is binding. Every business deal with professional reports in their day-to-day activities. So, they really need to bind these files not only to make them look professional but also to protect them from any kind of damage.
As binding documents require a binding machine, businesses often get confused whether they should buy or lease a binding machine. Well, that’s a tough question to answer. But, here we have tried to make it easy for you, whether you should buy or lease a binding machine. Below are some points that will make it clearer which option is best suited for your business needs.
• Upfront Costs
If you look at the upfront costs, then leasing a binding machine require fewer upfront costs as compared to buying. It provides you the option to choose any binding machine for a free trial, and then decide which machine is best for you. Also, if you want to change any machine, then it is also possible with leasing. For example, if you lease a binding or UV coating machine, but then you realise you need a binding and laminating machine – you can easily switch from a UV coating machine to lease a laminating machine.
Binding machines are getting advanced day after day, as new technologies are being implemented to it annually. So, leasing a binding machine makes more sense than buying one. Also, when you lease a binding machine, the maintenance costs will also be included in the lease agreement, which means you don’t have to pay for maintenance separately. Leasing a binding machine will save you both time and money.
• Growth Factors
Growth matters for every business, especially for small companies as they put all their efforts in growing their company. For such businesses, leasing a machine is a more flexible option as compared to buying one. For example, let’s consider that you have a leasing contract for binding machine and laminator, and you get a very big client, but it requires the use of a UV coating machine.
With the leasing contract, you can easily add the UV coating machine to it. Also, if your requirement for UV coating machine is limited for one project only, then you can lease it for a short period. Apart from the machine, you also need binding supplies or other equipment. With the leasing contract, you can also get the supplies on lease from the same company. Companies like Binding Outlet even offer discounts on leasing supplies if you purchase them after some time.
• Fixed vs. Variable Costs
One small disadvantage of leasing a binding machine is that the leasing will add to your monthly overhead. Also, the price for leasing a binding machine or any other machine increases annually, whereas, when you buy a machine the price is fixed. However, if there is any extra cost involved in the leasing agreement, they can be made up with the benefit of updating your machine as well as with the maintenance cost. So, before making a final decision, do your research and check how much it will cost you annually for leasing as well as buying the machine.
When you lease a binding machine, it is counted as a business expense. So, you’ll to pay tax for it on an annual basis. However, if you buy a binding machine, then you’ll only have to pay onetime tax for it. So, based on circumstances and your requirements, you can decide whether paying an annual tax for leasing is beneficial or paying onetime tax is more beneficial.
Based on the above, you can decide yourself which option is more beneficial for your business. Whether you lease or buy a binding machine, both options have their own benefits. But, in our opinion if you’re a small business, then leasing a binding machine is a more profitable option for you. You can quickly get a binding machine on lease from Binding Outlet.