Copier & Multifunction Printer Purchasing – Finance Options

Copier & Multifunction Printer Purchasing – Finance Options – Lease, Rent or Purchase a Multi-Function Printer or Copier – which option is best for your company?

Copier & Multifunction Printer Purchasing – Finance Options

Hire purchase/Asset purchase – GST credit is generally claimed by the purchaser and a finance company generally funds the GST. You claim a deduction for interest and depreciation, the loan liability is taken up in the balance sheet. The asset is included in depreciation schedule and, compared to a lease, deductions are likely to be more in the early years and less in later years.

Chattel mortgage – works in a similar way to a Hire Purchase, except if you are on the cash basis for GST reporting, you can claim all GST credits up-front. The establishment fee is normally more than Hire Purchase. 

New or Used Equipment? We not only offer new equipment, we also have a comprehensive range of refurbished machines. These machines have been maintained and serviced by us from new and are fully serviced prior to being sold. These machines are up to 70% less expensive to purchase than new equipment and we offer a fully comprehensive 5 year maintenance agreement with each machine for your peace of mind.

Rental:

  • Off balance sheet reporting
    •  100% tax deductible repayments if used 100% for business
    •  Preserves working capital for other purposes
    •  No residual value liability
    •  Ability to upgrade – reduces equipment obsolescence
    •  Opportunity to purchase after contract ends may be offered
    •  GST on payments can be claimed on BAS
    •  Directors guarantees may not be required

Lease:

  • On balance sheet reporting as an asset/liability
    •  Accounting maybe more complex – depreciation of asset
    •  Preserves working capital for other purposes
    •  Residual value liability
    •  Contract to be paid out in full prior to upgrade
    •  May involve early payout penalties
    •  Less flexible upgrade path if required during contract period
    •  GST on payments can be claimed on BAS
    •  Risk of owning an obsolete device
    •  Directors guarantees may be required

Outright Purchase: 

  • On balance sheet reporting as an asset/liability
    •  Accounting maybe more complex – depreciation of asset
    •  Reduces working capital
    •  No residual value liability
    •  Upgrades or add-ons to be paid for – reduces working capital
    •  Risk of owning an obsolete device

 

Month to Month Rental: 

This is done “in house” and is usually for a used or showroom Machine. This rental is ideal for a short period of time but please bear in mind that a delivery and collection fee will also apply, as well as the monthly rental and a copy charge. Short term (weekly) rentals are also available if required. 

There are a number of questions to consider before determining what sort of finance to use when purchasing a photocopier, be it leasing, hire purchase, rental or any other forms of finance. We strongly advise that you speak to your accountant first as they will advise you on what the best financial option would be to suit your business.


It is usually a good idea to conduct a cost v benefit analysis. This will ensure that the benefit obtained from a photocopier will provide an adequate return on investment. In a business that generates income from copiers, such as a printing or photocopying business, revenue vs. cost is easily measurable. Coastal Business Equipment offer a free on-site audit to assist you in making this decision.


The majority of businesses lease or rent their equipment. The primary reason for this is that capital is not tied up and can be used for other purposes. Additionally, because technology changes so quickly, finance methods such as renting provides an easy upgrade path, with the added benefit of rental payments being fully tax deductible in Australia.

As with most products which are financed however, leasing or renting may cost more in the long run. Although when tax deductions are taken into consideration, they do become a very competitive option that must be considered. When financing a Multi-function printer purchase, please ensure that whichever method you decide is the best option for your business.

 Copier & Multifunction Printer Purchasing – Finance Options

Should you require any further information or advice on our low rate Finance Options  please contact us and one of our experienced sales staff will be more than pleased to assist you.

Coastal Business Equipment – we can save you the earth.