Buying a copier for your business is an expensive investment that doesn’t happen often. It’s a significant purchase that can easily take $10,000 from your budget. Spending that kind of money is not easy, especially if you’re a growing business. Luckily, most companies lease their copiers until they are more financially stable. To help you decide on copier leasing companies and what it takes to lease a copier for your business, stick around.
Leasing vs. Purchasing a Brand-New Copier
The big question is, “Should I lease or buy a new copier for my business?”
Both of these possibilities have advantages and disadvantages. Once you get into the nuances of the situation, you’ll realize that the answer depends on two things: the goals of your business and your financial situation, that is, your budget.
Right off the bat, high-quality copiers can cost anywhere between $13,000 to $35,000 – which is a lot of money to spend on one machine. Leasing is a cost-effective option for many small to medium businesses. On average, companies pay $195 to $920 monthly for copier leases.
The math is simple – leasing a copier is far less expensive than purchasing one.
But when is leasing a good idea?
There are a couple of situations where looking up a copier leasing company is a smart move for a business. For instance, leasing is a better option than purchasing a brand-new copier if you’re starting out and focused on investing only in crucial factors that will get your business off the ground.
Similarly, if your business doesn’t need fancy prints, you should go with a lease – unless you have the budget and want to upgrade your paper.
How Copier Leasing Works
If you’re interested in leasing a copier for your business, you should know how the process works.
The most important thing you should know is that you’re renting out a copier, and the overall cost and interest are included in your monthly payments. You should also know that there might be a maintenance agreement, but this contract is usually drafted separately from the lease itself.
The maintenance agreement usually consists of labor, potential machine fixes, separate copier parts, supplies, etc. This shouldn’t worry you as long as you take care of your rented copier.
Make sure to use all the features of your copier. If you’re renting a copier and just using one feature, you’re paying a lot for nothing.
During the copier lease, you will be responsible for three key points. They include:
- Paying the sum of your lease payments.
- Giving notice to the leasing company when the period comes to an end.
- Returning the copier to the original location.
And before you ask, yes – you are responsible for shipping your copier machine back to the leasing company.
Things to Know When Choosing Copier Leasing Companies
Besides significant factors, such as your business’s financial well-being and needs, there are a couple of other factors that you need to consider. Here are the most important ones:
Contract Terms and Conditions
Before you say “Yes” to leasing your business’s copier, you should thoroughly review the contract terms and conditions. This is a critical aspect of your purchase because the contract determines how much your monthly payments will be.
Typically, most copier leases last anywhere from three to five years, so you can easily consider this a long-term investment, even if you’re paying for its services monthly.
Some agreement terms exist separately, making them liable for negotiation. This is a major plus on your side because you can navigate the outcome and maybe even cut down on unnecessary costs.
Many companies also offer rebate programs. It’s common for a copier manufacturer to offer specific promotions that make their lease agreements more “attractive” for the lessee. Before deciding, remember to ask your copier leasing companies about these potential cost savings.
Type of Copier Leases
There are two types of copier leases.
The first type is known as the “operating lease.” This type of lease involves the rental of the machine and is relatively straightforward. Most companies opt for this type of lease.
At the end of the lease, you’ll be given a chance to buy the copier. The buyout costs include wear and tear and depreciation, and many companies find this option is a bargain for a machine they’re already using. However, you’re not obligated to purchase the copier at the end of a lease.
The second lease is known as the “capital lease.” This one is less common, but it carries certain advantages. This lease is basically viewed as a type of loan, with interest rates depending on the cost of the copier. Like the previous option, you can purchase the copier at the end of the period. However, with this one, the price will depend on the contract.
Clarification of Possible Issues
Just like any other contract, leasing a copier for your business contains sensitive information. So, before you sign it, you must clarify everything with the leasing company. Important details you should cover with the copier leasing company include hidden fees, damage coverage, and any other potential issues that may arise during your lease.
Once you determine the type of lease that best suits your business needs, make it your mission to review the contract in detail.
Equip Your Business With High-Quality Copiers
Purchasing a high-quality copier that gets the job done is a serious business investment, so it’s wise to consider your options and decide whether leasing or purchasing is a smarter business move.
If you’re short on finances or your business doesn’t require fancy printouts, you can easily lease a copier and save considerable money.
Docutrend is a strategic partner for modern businesses providing streamlined solutions for IT, document management, copiers and printers, and more. We aim to help your business grow, increase productivity, and maximize resources.
If your business is in New York, Totowa, Pennsauken, Edison, or Ft. Washington, this is your sign to contact us. One of our experts will get back to you shortly. We look forward to hearing from you!