How Does Printer Leasing Work?
Most people are aware that buying a printer outright for cash is not the only financial option for a company to acquire a printer, copier, or multifunctional device. If leasing a printer is being contemplated, it would be prudent to understand exactly how this type of transaction is structured.
Printer leasing is a financial arrangement where the use of the unit is granted by the lessor to the end-user for a fixed monthly payment over a predetermined time period. Printer leasing may or may not include a monthly service agreement that will cover maintenance (parts and labour) and consumables (ink or toner). In some instances, the service agreement may be covered by a separate contract.
Printer leasing is often financed by the company supplying the equipment or by a third-party bank or finance house. Either way, some form of credit check will be carried out and prospective lessees will have to be creditworthy to qualify for a printer leasing arrangement. Rental, on the other hand, is typically a shorter-term agreement or even a month-to-month arrangement where creditworthiness is often not considered.
Types of Printer Leasing
A Fair Market Value lease, also known as an operating lease, allows the lessee the option to purchase the equipment at Fair Market Value, return the equipment, or upgrade to newer equipment at the end of the lease term. These leases are generally the most affordable and used when a business does not want to retain the unit at the end of the term. The equipment is essentially financed for most of its value over the three- to five-year term, and there is little value left in it at the end.
A buyout or capital lease is like purchasing equipment by taking a loan. The fixed monthly payment will usually be bit higher than a Fair Market Value lease, but the equipment may be bought outright for a small nominal fee at the end of the lease term. Businesses that plan to keep the equipment after the lease can opt for this type of lease.
Terms and Clauses to Avoid When You Rent A Printer
Beware of the fine print. Clauses that allow escalation or adjustment, for whatever reason, to your payment amount during the term of the lease should be treated with caution. Automatic renewal clauses, which put the onus on the lessee to return the equipment or notify the lessor that the lease will not be extended at the end of the lease, should be viewed with suspicion. Insurance surcharge clauses should be removed where a company already has an office insurance policy covering the business equipment. Printer leasing from a reputable company like Raydian will ensure an honest, fair, and ethical agreement. Read more on printer rentals or contact us for all your printer needs.