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Leasing a photocopier will benefit your business in the long run because you can create copies of important documents without relying on any third parties. Also, you don’t have to invest a large sum at the very onset, which would have been inevitable if you had purchased the machine. You will enjoy several benefits if you lease a photocopier, but there are some rules for photocopier leasing.
Here are a few factors you should contemplate before going ahead.
- Understanding the Terms of the Lease
A lease contract will always have several clauses and sub-clauses, and you need to go through and understand each of them before signing on the dotted line. Look at the points regarding the lease period, whether the rates are locked-in or not, end of term conditions, and buyout options.
Do they match what you have in mind? Will it fit your business model and fulfil your photocopier needs at the same time? If you are not sure about any of the points, make sure you revert to the leasing company for clarifications.
- Type of Lease
One of the most crucial aspects you should consider is the type of photocopier lease you want to go for. There are usually two types of leases.
- Fair Market Value or FMV Lease
This is one of the most affordable types of lease systems available. This lease comes with a buyout option. If you are interested in retaining the photocopier at the end of the lease period, if the lease EMIs have not covered the full cost, you can pay the balance amount and buy the machine from the leasing company. Since some companies do not provide buyout options, you need to find out about this while signing the contract.
- Upgrading the Machine
You could also upgrade the copy machine that can be a cheaper option depending on the model you are using. Modern printers need several software applications, and simply upgrading the software can add multiple additional features to the machine.
You could pay for the upgrades and retain the photocopier. Ensure the lease contract includes this clause if you want to retain the machine at the end of the period.
Most leasing companies will lease out their photocopier machines for a standard period of five years, though some offer them for shorter or longer periods. Check with your lease company whether you would have the option of auto-renewing the lease at the end of the period. At the end of the said five years, for example, you might feel that you would need the photocopier machine for another two years.
Checking this factor at the very beginning prevents the leasing company from pledging your machine to another, assuming that you would return the machine at the end of the first five years.
On the other hand, the leasing company should also inform you when your lease period ends. There is usually a 90 day period where you get to decide whether you want to return, renew or buy out the machine. Failing to reply might result in auto-renewal for any number of months or years, and you might not want the photocopier for that long a period.
With these factors in mind, you can opt for photocopier leasing without worrying about the future.
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