graphic savings group blog

Paying your Copier Lease With a Credit Card

Did you know that most major manufacturers and brokers will let you pay your equipment lease with a credit card?

If you are comfortable with your cash flow and know that you can pay off the balance, this could be a great opportunity for you to improve your cash flow and rack up thousands of reward mileage points.

You can have as much as 25 days of additional float, which allows you to improve your resource allocation- the whole idea behind getting an equipment lease in the first place. Moreover, reward mileage can be used for company travel or even as perks for customers or employees. In truth, that is potential money that you are leaving on the table if you're not using a credit card.

Again, this strategy for paying your equipment lease is only appropriate if you have a dedicated revenue stream. If you have questions on equipment lease payments or are interested in leasing a copier, please consider the Graphic Savings Group. 

Copier leases and Emergency Repairs

Emergency repairs on a copy machine can be a double hit on your bottom line. With your equipment out of service, you can lose valuable time and revenue from jobs that can't be finished. In addition, the cost of hiring a service technician or finding a rush replacement can add up in a hurry. Always know the value of your leased equipment.

Keeping your copier on a service package is standard in most lease agreements. However, you should always know the details of that service, ie. what is the response time of technicians and when are they available to service your machines. That way, you will be prepared to handle any equipment malfunctions without sacrificing profits.

If you're looking to lease a copier, please consider the Graphic Savings Group.

Tonight's Homework: Equipment leasing options

Equipment leasing has proven to be a growth catalyst for a number of small businesses. And it can be the right answer for you. Just make sure you read the fine print with regard to end-of-lease options and structure the deal according to your needs.

You've done your homework and found the right time, the right equipment, and the right broker. Why stop there? If you're looking for a bit of extra credit, or just the opportunity to secure your company the best deal, always make sure to negotiate the end-of-lease option. Consider which end-of-lease option is attractive to your company. The equipment can be returned to the lessor or purchased at a pre-determined fair market value. In addition, a nominal buyout fee of $1 or $100 is also a possibility. Equipment returned to the lessor frees up space and capital for you to lease or purchase a new machine. If equipment is purchased at fair market value, often that money can be applied towards a new lease or invested in other growth areas. When negotiating a buyout price, consider the life span of the equipment that you are leasing. A computer will not retain value as long as a digital copier. The fair market value of equipment is also dependent on the monthly payment amount and collateral of the client.

Ultimately, you should consider how long you want to use the equipment for and what you want to do with the equipment at the end of the lease. Make sure you factor in your expected cash flow and the tax implications of leasing machinery. Finally, look at the present needs of your coporation and your prospects for growth. Keeping those factors in mind, will allow you to leverage the flexibility offered by a lease and maximize your profits for both the short and long-term.

For more information on end-of-lease options or equipment lease choices, please contact us at Graphic Savings Group.