Southern Lease

Office equipment leasing is one of the popular methods of saving money. In this way, companies need not buy the equipment but can simply take them on lease.
A lease is defined as a contractual arrangement between two companies in which one provides the other with required equipment for a period of time in exchange for fixed monthly payments.

In modern times, small as well as large companies prefer to lease office equipment rather than spend a significant amount of capital on purchasing them. By leasing office equipment, companies save on a lot of money and also get tax benefits from the government on their lease. Further, in order to purchase office equipment, a company may have to take a loan. At the same time, if it leases the equipment and gets the lease financed, the costs involved are still minimal.

Almost all companies offer customized plans for leasing office equipment such as photocopiers, office computer systems, furnishings and software. The payment schedule is set up according to the cash flow structure of the company. It can also be set up in a way that matches the depreciation schedule of the equipment.

The main advantages of office equipment leasing are that unlike conventional bank loans that usually require a considerable sum of money upfront, leasing generally requires much less. Conventional financing may require 10 to 20 percent of the loan amount as down payment, whereas leasing generally requires only one or two payments upfront, which are applied to future payments. Generally, the full cost of the equipment, service, shipping, installation costs and maintenance are included in the lease.

At the end of the leasing period, companies can decide to purchase the equipment, return it or simply extend the lease.