The drawbacks of renting a credit card reader
Small businesses tend to be much more careful with the investments that they make because they cannot afford to lose money, unlike big enterprises. It is clear that credit cards are the way of the future and in practice almost all merchants have implemented the electronic payment system. Many who are just starting out usually choose the least expensive variant and lease card readers. Though it is believed that renting has decreased in numbers, there are still numerous persons who refuse to buy the readers. Nevertheless, opting for renting instead of buying a card payment machine can hide many deceptions. Before making any decision it is important to take into consideration the factors involved.
Buying is cheaper
Contrary to popular belief, buying will save more money than renting for a certain period of time. It is the same as with bank loans: the loaner usually ends up paying more than he took. The minimum period of lease is of 48 months, meaning that if you happen to change your mind you are stuck. The monthly cost of the reader is equal to the actual value of the reader on the market. The sum you pay for the purchase of the machine will be returned to you as soon as sales start to bloom. On the other hand, those who prefer to rent will have to give up all their profit to the lease company. The whole point of getting into business is to gain something, not give it away. The best solution is to contact a merchant bank and set up an account, without even having to pay any interest. After having finished with these formalities, they will send you right away the equipment ready to use.
Renting is not free of obligations
This signifies that in the long run, you will pay the machine times and times again, when you could have simply bought it in the first place. It is true that for some entrepreneurs leasing can definitely help minimize the start-up costs. Given that many have already exceeded their initial budget, renting can be a good solution to pay less instead of paying all at once. In addition to this, customers have the possibility of deducting interests. This will spare them supplementary costs for a couple of years or so. Otherwise, they would not be able to get the machine. Many sales reps tend to mislead customers into taking out lease contract. It is highly advisable that clients read thoroughly what contracts they sing. While it is true that reality is not as harsh as it seems, some will most likely profit of others ignorance.
In conclusion, it is worth considering both aspects, each with their pros and cons, before reaching a decision. Even though a lease contract may appear to be the less expensive solution, the great drawback is the period of time to which you are legally committing yourself to pay fees. It is a false idea that renting card machines is free of cost. While purchasing may involve a bigger financial effort, it is better to buy than worry about payments.