If your organization lacks the funds to spend on an outright purchase of office
equipment you may want to make the best use of the opportunity offered by printer
leasing. With a printer lease in place, you can minimize capital expenditures by
stretching costs over time in a multitude of predictable monthly payments. With lease
payments not only are charges and interest added to the net payment amount. But you
also get access to service, maintenance, and troubleshooting that allow your equipment
to run at top capacity.
Plus, leasing a printer allows you to upgrade your equipment at the end of the lease, or
sometimes even earlier, to decrease the chances of machine obsolescence that can
hamper your company’s productivity and efficiency. A leased printer can provide your
business direct access to the latest equipment that you would not have been able to buy
upfront due to high costs.
However, every printer lease is unique. This article post will explore the intricacies of
printer leasing and provide tips to enter into lease agreements that are advantageous to
your business.
Get the Most Out of Your Equipment Leasing Agreement
What Type of Lease Do You Need?
There are three main types of leases offered by the best printer leasing companies in
the market: financial leases; leases to own the equipment; and operating equipment
leases; each having unique benefits and disadvantages.
Financial Leases: These leases are commonly called capital leases. In this agreement,
you own the equipment and report it as an asset, so you can get a tax credit. However,
you can be charged extra with this type of lease, including fees for maintenance, liability
insurance fees, plus shipping expenses.
Lease-to-Own: This agreement allows you to stretch purchase payments out over a
specific duration like weeks or months. However, a certain percentage of your lease
payment will apply to the net purchase amount of the equipment. That means you may
end up spending more in the long term. However, at the end of this lease, you are the
owner of the equipment, which may have become obsolete by now.
Operating Equipment Lease: In this agreement, you will rent equipment for a pre-
specified duration but can’t claim ownership. These are types of leases that include
everything you need in one fixed monthly payment. For example, your lease payment
will comprise maintenance, troubleshooting, repairs, and oftentimes supplies for the
equipment.
Of course, every lease is different, so be sure to read the fine print before signing.
Be Awake to Onerous Language
After you’ve selected the type of lease that will suit your company’s purposes and
budget best, you must read every word. Even the best printer leasing companies may
offer leases with clauses that can put your firm at a disadvantage. One of the clauses to
be aware of is the “Hell or High Water” clause.
‘A Hell or High Water Clause’ is a clause in which the leasing company is not liable for
the following:
Delivering defective goods
Failure to service their equipment
Equipment fails to operate as expected
This clause mandates you to continue making lease payments, even if your equipment
does not function.
Conclusion
Pay heed to the above points to make best use of a printer leasing agreement.
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