Leasing provides your customer with the use of the equipment for an agreed-upon monthly payment for a fixed term.
Your customer can deduct their monthly lease payment as an operating expense. Leasing also helps them avoid the Alternative Minimum Tax (AMT) by reducing their AMT tax liability.
Your customer can structure payments to fit their budget.
4. 100% Cost Coverage:
You can include “soft” costs such as shipping, software and installation right in the lease.
5. Technology Changes:
In three years the technology can and will change for the better. By leasing your customer will be forced to look at the new technology and see how it helps your customers business
6. Conservation of Capital:
7. Easier Cash Flow Forecasting:
Fixed monthly payments help your customer budget money into the future.
8. Fixed Payments:
9. Preserves Credit:
Leasing doesn't tie up your customers line of credit. So you have more capital at your disposal
when you need it!
10. Longer Terms:
Many banks only lend money short-term, usually 12 to 36 months. But leasing lets your customer extend your term up to 72 months!
11. Purchase or Renewal Options:
new equipment or continue to lease at substantial savings. Of course you do not want them to renew but you can write a service contract and keep them until they are ready.
12. Insurance: Have your customer show proof of insurance at the lease signing or with the first bill and save them $5-$50 each month. However, if your customer is in a flood prone area then they need to take the insurance because the insurance will cover flood damage as I've noted on the print4pay hotel forums. Most BOP policies do not cover flood!
13. Service…Include it in Lease?
There are many opinions on this however there are a few things to consider. At 36 months, which is basically interest free it will not cost any extra to put the monthly service cost in the lease. At 48 or 60 it can cost the customer. Separate yourself from the competition and break it out on a separate Cost per Copy Agreement. If you still include service in lease be very confident on the anticipated volume.
14. Return on Investment or (ROI):
Do a cost analysis including current machine capabilities, current CPC, supplies on printers, current lease, productivity & options they can have. Do they ever go to Kinko’s or Staples for copies? Show the customer a little savings and they will give you the key to the executive
washroom. If the cost is more stress productivity and keeping people in the office/desks and the new features and benefits.