Building a business requires a huge learning curve. And its not the big things that weigh you down; it’s the small things you know little about yet takes a tremendous amount of research to decide the right course of action.
To have the most successful business possible, you need the ability to accept credit card payments. Consumers enjoy the use of “plastic” to take care of the purchases. Without the ability to accept credit card payments, you may lose a large customer base.
To accept credit card payments, you need the right equipment to process the payments, including a credit card terminal. One of the key choices you must make when choosing a credit card terminal is whether you should buy or lease the equipment.
Buying or leasing a credit card terminal depends on several factors.
Available money – if you have limited funds available, you may want to consider leasing a credit card terminal. Terminals can be pricy upfront.
Tax purposes – both leasing and buying a credit card terminal have different tax benefits. When you lease, you can deduct interest from your taxable income each year. When you buy, you can take an annual depreciation deduction.
Technology – technology changes all the time. What may be sophisticated today may be obsolete in a few months. If your business is changing and utilizing new technology, such as mobile devices, a lease may be able to keep you up to date without the heavy investment of purchasing.
Warranties – warranties can vary, depending on if you are buying or leasing the equipment. Make sure you understand the finer points of the warranty for buying and leasing before you make your final decision.
One of the main reasons why you might consider buying a credit card terminal instead of leasing it is the final cost. When you buy the equipment outright, yes, you are shelling out several hundred dollars at one time – but the purchase is final and the terminal is yours. When you lease the terminal, you will be paying monthly payments for several years – your final cost could be triple the amount you would have spent if you had simply bought the terminal. Weigh your options carefully and make the best choice for your business and your budget.