Photocopier leasing is a smart choice, especially if you own a small or medium enterprise. For one, this setup allows you to have a copy machine without making a big, lumpsum payment. Moreover, when you lease, you do not have to worry about getting stuck with an outdated equipment. Depending on the agreement, you can request for the latest or a more advanced model when the need arises.
If you are going for this option, know that finding the right photocopier contract for you can be a bit overwhelming given the numerous options available. Furthermore, for first-timers like you, reading contracts peppered with leasing jargons can be quite challenging. Worry not, though, because we’ve prepared a guide on how to choose the right photocopier lease contract. Read on to know what you need to consider to get a contract that’s going to benefit your business.
Duration of the Lease
Copier leasing companies offer different types of lease arrangements. The average lease duration is two to five years. This is longer as compared to copier rental arrangements which run on a month to month basis.
Keep in mind, a photocopier leasing contract is a legally binding document. You need to adhere to its terms to avoid legal woes. Hence, it is important that the number of years on the lease is something you can commit to. You cannot sign a 4-year agreement and bail out only after a year. Doing this has serious repercussions which may hurt your company’s finances and reputation.
If you are concerned about your company’s stability, what you can do is to choose an agreement with the shortest term (which is usually two years). If your business does well at the end of the contract, then you can just renew it. Please note, however, that the shorter the term, the higher the monthly payments will be. You can ask your dealer what’s the best arrangement for you based on your volume and preferred equipment.
Aside from the number of years on the lease, you must also check the payment schedule. The common practice is for the fees to be paid monthly. However, it is not unusual to find companies which have a quarterly payment schedule.
For this, it is best if you consult your accountant what term is better for your company. While some dealers have standard payment schedules, others are more flexible, accommodating whatever is easier for their clients.
Find out what is included in your contract. Will the dealer be providing the supplies like ink and toner for the duration of the lease? Who takes care of the equipment’s repair and maintenance? Who pays for parts that need to be replaced? These details are essential in making an informed choice, one that’s truly going to benefit your company.
Know and understand what the contract says about equipment upgrade. When your business grows, it is most likely that your printing or copying needs will increase, too. Of course, to keep up with your requirements, you would need to upgrade your machine.
Understanding that their clients must keep up with their changing needs, some copier leasing companies allow equipment upgrade during the lease period. But it’s also not unusual to find dealers that only permit their clients to change their machine at the end of their lease.
Most copier lease contracts have an evergreen or automatic renewal clause. The clause stipulates that you need to notify the dealer of your desire to terminate the lease when it expires within the given timeframe (usually 90 days). Failure to do this results in the automatic renewal of your contract.
Sometimes, unforeseeable circumstances arise which may force you to terminate your lease early. This is why it is important that you know what the dealer’s policy is on early termination. How soon should you give your notice? What’s the cost of ending the contract early? Are you still going to be penalised if you’re terminating the lease to upgrade to a new equipment? Knowing these pertinent details enables you to plan accordingly and make the necessary adjustments, especially when it comes to your finances.
Want to know how to choose the best photocopier lease contract? Our friendly and experienced staff can help you. Call us at 1890 987 900 today!