3 Reasons to NEVER Lease a Credit Card Machine
Although leasing terminals has declined in recent years, some sales reps will try to convince you that leasing is the right option for you. They’ll tell you a bunch of great things like, “you’re not required to pay any money up front,” or “you’re guaranteed a replacement terminal if yours breaks,” or “you’ll be eligible for new terminals when there are new features”.
Don’t fall for it!!!
- Leasing a terminal will end up costing you hundreds, if not thousands of dollars, including the fees associated with the lease. You could purchase that same machine in a matter of months… if not immediately.
- You may be required to purchase equipment insurance, which is another added cost.
- You have to sign a 4-year contract for processing services with that provider while you have the 48-month equipment lease. And, not to mention, you may even have to return the equipment at the end of your lease.
Why Purchasing a Credit Card Terminal is Your Best Choice
Typically, terminal leases carry 48-month lease agreement with a monthly payment between $50-$100/month. That is a LONG time to be paying for a machine that doesn’t cost more than $300 these days. Why not just purchase one outright? Most startups can’t afford to pay $300 for a new machine so ask your processor if they will work with you and spread the payments over a 3-4-month period. Simply Credit Card Processing will work with you to spread those payments over a 2-4 month time period because we know what it’s like to start a new business from the ground up.
The cost of the purchase is completely tax deductible, and you won’t get stuck paying $2400 for a machine that costs $400. That’s 600% in interest over the course of four years. Yowzaa!
The “Free” Credit Card Machine
Some processors offer up “free” terminals to their merchants, but as we all know, there is nothing free in this world. Generally, a free terminal carries with it a yearly “Terminal Replacement” or “Warranty” charge of anywhere between $50-$100/year. That’s still much less than what a lease would cost you.
If you really can’t buy one, see if your processor will give you one for “free.” Alternatively, some processors will spread the payment over 2-4 months and if they won’t, call us. We certainly will! Email us today: firstname.lastname@example.org
If you’re already locked into a lease, you most likely won’t able to break the contract. A lease term is usually 48 months, so you’ll have to find out when that term ends before you can walk away without a penalty.
If you’re not currently in a lease, but are considering one, don’t be deceived by exaggerated claims from sales reps. Instead, do your own homework and calculate the total cost of leasing vs. owning. I’m sure you’ll find that the best and most affordable option lies in ownership.
Simply Credit Card Processing, LLC