How to Choose the Right Printer Leasing Company
If your organization does not have the capital to spend on an outright purchase of office equipment you may want to take advantage of the benefits of printer leasing. With a printer lease in place, you can reduce capital expenditures by spreading costs out over time in a series of predictable monthly payments. With lease payments, not only are fees and interest included in the payment amount, but you also get access to service, maintenance, and troubleshooting that keep your equipment performing at top capacity.
Importantly, leasing a printer allows you to upgrade your equipment at lease end — or sometimes even earlier — to reduce the potential for machine obsolescence that can interfere with your company’s productivity and efficiency. A leased printer can help your business gain access to leading-edge equipment that you would not have been able to purchase outright due to high costs.
However, not all printer leases are created equal. This article will explore the ins and outs of equipment leasing and provide tips to keep you from entering into lease agreements that are not advantageous to your company.
Responsible Printer Leasing — How to Get the Most Out of Your Equipment Leasing Agreement
Like any legal document, a lease for printers or any other type of office equipment should be carefully scrutinized before you sign on the dotted line. Many leasing companies include onerous terms in their leases that put your business at a disadvantage or offer lease types that you may not want — or need. To help you sort through the details, we’ve provided some simple, helpful guidance:
First, What Type of Lease Do You Need?
There are three main types of leases for equipment: financial leases; leases to own the equipment; and operating equipment leases; each with its own benefits and disadvantages.
Financial Leases: These leases are also known as capital leases. In this agreement, you own the equipment and report it as an asset, which can provide you with tax credit. However, you can be liable for extra charges with this type of lease, including fees for maintenance, liability insurance fees, and even shipping expenses.
Lease-to-Own: A lease-to-own agreement allows you to spread purchase payments out over a specific amount of time. However, only a percentage of your lease payment will apply to the final purchase price of the equipment, so you may end up spending more in the long run. In addition, at the end of this lease you own the equipment, which may now be obsolete.
Operating Equipment Lease: In this agreement, you will rent equipment for a pre-specified period of time without owning it. These types of leases typically include everything you need in one stable monthly payment. For example, your lease payment will include maintenance, troubleshooting, repairs, and sometimes even supplies for the equipment.
Of course, every lease is individual, so be sure to read the fine print of all contracts before signing.
Beware of Onerous Language
After you’ve chosen the type of lease that will suit your business’s purposes and budget best, you want to read every word. Some companies offer leases that contain clauses that can put your company at a distinct disadvantage. One of these is the “Hell or High Water” clause.
The Hell or High Water Clause: A Hell or High Water Clause is a clause in which the leasing company has no liability for the following:
- Delivering defective goods
- Failure to service their equipment
- Equipment fails to operate as expected
In addition, these clauses protect the leasing company from liability in the event of bankruptcy and even allow them to transfer your lease to another vendor after lease activation. Effectively, this clause can require you to continue to make lease payments, even if your equipment does not function. It can also mean you must pay more to get proper maintenance and service for your equipment.
Let RJ Young’s In-House Printer Leasing Take the Worry Out of Leasing Office Equipment
At RJ Young, our true in-house printer leasing agreements do not contain “Hell or High Water” clauses. Instead, we stand behind our products by ensuring our lease customers are always served by the high standards of our in-house team. We even create custom lease agreements that offer our clients variable billing options, coterminous agreements for additional equipment, flexible termination, and renewal options, and even assistance in relocating equipment if that becomes necessary.
Get a printer lease that covers all contingencies. Touch base with an RJ Young consultant today and explore how our in-house printer leasing program can benefit your company.