Equipment Leasing and Rental Services
Sunrise Business Services offers full equipment leasing services on all credit card terminals. There are benefits to leasing a credit card terminal over a purchase; however, we feel that the disadvantages far outweigh any advantages. The major benefits of leasing are no immediate large cash outlay, spreading your payments over time and the tax advantages or deducting lease payments over time.
The greatest disadvantage is simply the total cost of leasing. While it is true that you can put very little money down to lease, you are in many cases ultimately paying up to six times the retail cost of the terminal. A brand new state-of-the-art terminal we sell for a little over $300 can cost you up to $1,800 over a three or four year lease.
A lease is simply a financial instrument. The leasing company is a finance company and is not responsible for maintenance, warranty, repair, upgrade, or service of the terminal. They are only concerned with collecting your monthly payment. Most leases automatically renew and contain a buyout clause at the end of the term that must be acted upon to end the agreement. Watch out for terms such as a fair market buyout clause. Fair market is vague, but even if it is capped at 15% of the original lease, in four years you may end up paying much more than the equipment is worth today.
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