For many businesses, a simple multifunction printer is sufficient to handle daily printing, scanning, and copying tasks. Many businesses can also absorb the modest costs of buying a basic, new desktop printer for this purpose. And if you’re using them for routine office tasks, you might even be able to handle the maintenance – minor repairs and replacing ink and toner – yourself.
But if your print requirements are more specialized or demanding, you probably need a higher-end machine or several machines. And in this case, the upfront costs of buying one or more expensive machines, and maintaining them, can quickly reach six figures. Not every business can handle that kind of hit to operating cash flow.
Fortunately, your options aren’t limited to just buying a printer outright – many printing technology companies now offer the option of printer leasing. But is this the right choice for you? In this article, we’ll examine the main considerations when deciding whether to go for printer leasing and what to look for in a printer leasing agreement.
To Lease or Not to Lease
As touched on above, the primary consideration in deciding whether to go for a printer lease is the upfront cost savings. With printer leasing, instead of paying for the machine upfront, you’ll sign an agreement to have the equipment installed in your office for a set period – usually three to five years – in exchange for a monthly fee.
A printer leasing agreement will also often include options for upgrading the machine during the course of the agreement, especially if the lease is for a longer period. You also may have the option of buying or taking full ownership of the machine at the end of the lease period.
It’s true that by the end of the printer leasing agreement, you will probably have spent as much on the printer as if you’d bought it outright, if not more. And you may have to pay a down payment at the beginning of the lease. However, compared to the amount you will have to expend all at once to buy a machine outright, the set monthly fee is usually much more manageable and definitely kinder on your operating cash flow.
So, what are the other major considerations when deciding which printer leasing offer to opt for?
Types of Printer Leasing Agreements
Printer leasing will typically fall into one of the following two categories:
Operating Lease
This is the most common form of printer leasing agreement. It is more or less a kind of rental agreement, where the printer remains the property of the leasing company throughout the lease period. At the end of the term, you can either terminate the agreement and return the machine, or extend the term with an upgraded machine.
As noted earlier, this type of printer leasing is often bundled with an agreement for the maintenance and repair of the machine during the term, and the management of print supplies like paper and toner. If you are not that tech-savvy, are leasing a more complex machine, or are printing large volumes, this maintenance agreement can prove to be a huge cost saver in the long run.
Maintenance Agreement
Printers can jam, disconnect from the network, and break. The cost of technician call-out fees, replacement parts, as well as the disruption and downtime caused by a breakage can make for unwelcome and unexpected financial surprises. All of this makes a maintenance agreement that coincides with your printer leasing agreement well worth looking into.
A maintenance agreement will make it easy to contact experts to keep your machine in working order, keep your printer software and supplies up to date, and address all other maintenance issues. Your printer leasing agreement could also possibly include the use of a replacement machine if the one you’ve leased is inoperable and needs to be taken to the workshop for repairs, minimizing downtime and disruption for your business.
Another benefit of an operating lease is that the costs are tax-deductible as a valid business expense.
Capital Lease
This kind of printer lease can be thought of as a kind of “loan to buy” arrangement. The intention here is that at the end of the lease, the ownership of the machine will be transferred to you. So, you’re essentially buying a machine but paying for it in monthly installments instead of in one upfront fee.
There are two main differences between a capital lease and an operating lease, besides the transfer of ownership. Firstly, the monthly installments can be significantly higher with a capital lease. And secondly, you may not be able to deduct the printer leasing costs on a capital lease as a business expense.
Further Considerations
Here are a few of the other major considerations when deciding which printer lease to choose:
Choosing the Right Machine
Make sure the printer you lease is a good fit for your specific needs. For example, perhaps you need to print a substantial number of copies, need extremely high-quality color prints, or require extra features. Over and above just printing, copying, and scanning, some printers offer extras like stapling, folding, hole-punching, and booklet making.
Connectivity options are also worth consideration. Some printers only have options for wired connections, via Ethernet cables. That’s going to be a problem if you need to connect wirelessly to the printer from a remote location.
Printer Leasing and Maintenance Agreement Periods
Make sure your printer leasing agreement is for the length of time you require. If you lease for longer than you need, you may incur unnecessary expenses. But if you lease for too short a period, you might find that you still need the device but the agreement runs out. Also, it’s not necessarily a given that your lease agreement and maintenance agreement run concurrently. Make sure the printer leasing agreement does not run longer than the maintenance and repairs agreement.
Additional Costs
Your agreement may not cover all forms of maintenance and repairs. For example, it probably won’t cover damage caused by you or your employees. There may also be extra charges if you use more than the agreed-upon monthly allotment of paper or toner. So, check the terms of the printer leasing agreement thoroughly and make sure you know exactly what you’re paying for, and what you’re not.
The Right Printer Lease Partner
In the end, the company you lease from is as important as the machine itself. Get a few quotes from different suppliers and compare their offerings. Also, check the reputation of the company, and read available reviews to be sure that they can be trusted.
If you’re in the New York, Totowa, Cherry Hill, Edison, or Ft. Washington areas, reach out to Docutrend for a free, no-obligation assessment of your needs, and to get a quote. We have a customized printer leasing solution just for you.