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Lease Photocopiers




Keywords:

Photocopier leasing, photocopier rental, companies, printer leasing costs,

Why Lease?

Lease photocopiers account for the majority of the sales. This is because it spreads the payments over a period of time and helps with cash flow if you don’t have a lump sum sitting in the bank.

You should definitely talk to your accountant as many also find its tax efficient, as the whole leased quarterly price may be tax deductible for your company. You can upgrade your lease agreement part way through, just bear in mind you will incur a settlement fee either rolled into the new lease or left for you to settle.

Benefits of photocopier lease agreements

  • Leasing spreads a large payment to smaller quarterly payments
  • Reduce the effect on cash flow.
  • Easy to upgrade
  • Tax efficient
  • Leasing the Lease company has the title of the machine and the dealer is responsible to the lease company.
  • Pay for a larger, faster, better quality or machines with more functionality to get your business the facilities its needs now that will pay in the long term.

What is the average length of a copier lease?

Photocopier and printer leasing can be anywhere from 1 to 6 years.  About 86% of leasing is done on a 5 year lease and about 9% on 3 years.  One and 6 years is very rare, photocopiers can be put in with other equipment like telecoms for an extended term.

What type of photocopier can I lease?

You can lease any capital equipment but the main guidelines are the equipment has to last the length of the lease.  This mean if you want to lease a printer it has to made to last the 5 years minimum.  Leasing starts at £1000 for a piece or pieces of equipment.  Here are some of the brands and types of equipment you can lease:

Canon

i-SENSYS LBP, imagePRESS C650, MF, imageRUNNER ADVANCE, i-SENSYS MF, 

Develop

Ineo, ineo+,

HP & Samsung

Samsung Xpress SL, Samsung CLP, Samsung ProXpress,

Konica Minolta

bizhub, bizhub C, bizhub P

Kyocera

ECOSYS M, TASKalfa,

Lexmark

CS, CX, MS, MX,

Olivetti

d-Color MF,

Ricoh

MP, SP, MPC,

Riso

ComColor®, GD, FW, X1, SF, ME, MZ, One-Color

Toshiba

e-Studio, Hybrid

Xerox

WorkCentre, VersaLink, AltaLink, C, D

How much does it cost to lease a photocopier

Most leasing companies prefer you pay for leasing quarterly in advance.  This is not to say you can’t pay monthly, but lease companies will require you to pay a few percent higher to do so.  You are also required to pay a document fee, this can be waived by some companies usually £100 to £180.  Some companies also charge annual fees and missed payment fees etc There will also be a payment of a minimum of £50 to retain the equipment at the end of the term.  Here is a guide to the kind of costs you can expect to pay for leasing:

Entry level– £30 to £300 per month or £90 to £900 per quarter

Desktop – £20 to £46 per month or £60 to £138 per quarter

Multifunctional photocopiers – £20 to £325 per month or £60 to £975 per quarter

Industrial – £430 to £1’500 per month or £1290 to £4500 per quarter

Colour photocopiers– £20 to £325 per month or £60 to £975 per quarter

Mono photocopiers– £20 to £290 per month or £60 to £870 per quarter

Floor standing copiers– £20 to £325 per month or £60 to £975 per quarter

These will vary depending on the configuration and functionality to add to the machine.

 How to negotiate Business Equipment leasing

Who are the leasing companies?

Grenke    https://www.grenkeleasing.co.uk/en.html   01483 4017 00

CF Group (CF Asset, CF Capital, CF Corporate)    http://www.thecfgroup.eu/       01279 759456

ING Lease UK     http://www.inglease.co.uk/en/home 02920 808 650

Siemens  https://www.siemens.com/uk/en/home/products/financing/equipment-and-technology-finance/financial-products/finance-lease.html    01753 434361

Peac Finance     http://www.peacfinance.com   01344 383700

Shire Leasing     https://www.shireleasing.co.uk/          01827 300 339

Tower Leasing   http://www.towerleasing.co.uk/          01753 837050

Bluestone Leasing        http://www.bluestoneleasing.com/     01924 248 800

Clear Asset Finance     http://www.clearaf.com/            01277 239932

How do I get out of a lease contract or break a equipment lease agreement?

The short answer is, you can’t.  You should see it as a mortgage, once you enter into the agreement you either need to go the full term or pay the amount of payments left.  Dealers can you get out of a lease agreement and they do this by paying the remainder of the lease off.  You can get a slight discount which is why it’s always wise to ask the LEASE COMPANY for the settlement as this will give you a genuine figure, instead of asking the dealer.

Only once have I got someone out of the lease because they had supplied them the wrong machine that was on the lease and it was clear by the companies reply they knew what they had done.

The Difference between Photocopier Rental and Photocopier Lease

Its mainly the term, a rental is much shorter in period than a lease.  You would expect to have a rental photocopier for a few days to a few months.  You would expect to have a lease from 3-5 years usually.  You would also say the obligation in contract would be less in a rental as the company is expecting to have the machine back and would probably do a deal with you if you need to return it early.  The dealer can then re-rent the photocopier to someone else.

Should I lease or buy a photocopier?

There are positives and negatives to both, if you have the funds buying can give you a certain mount of control over your expenses and save on interest.  Leasing will break up the payments and allow you to write off the full amount each quarter.  Most companies lease because of these reasons.

If the copier supplier lets me down can I cancel the lease?

No, if you’re having issues with the company regarding your current provider you should talk directly with the lease company.  Document all the things wrong and times taken.  The dealer has a duty to lease company to look after the machine, so you are wise to speak to the lease company directly to come to a resolution.

What questions to ask yourself before signing a new lease agreement?

Have a got 3 quotes to compare and ensure I get a great price?

Did I ask about the terms and the projected costs?

Have is seen the FULLY completed contract before you signing?

Have is keep it for a few days and read over it and understand it before signing?

Have I put a lines through any blank boxes? (apart from boxes the lease company completes and serial number)

Made sure it has all the copier accessories/options you asked for all noted?

Checked it says the machine is “NEW” (if it’s a tick box, cross out the other box to make sure!)?

If there is a lease settlement, made sure the old photocopiers lease details is completed on the paper work or you have it in writing that they will settle the lease?

Lastly but very important: Have you made copies of the signed contract before you send it back for your own records?

Have you used the Bizpare® site to help you?

What do I need to provide to be approved for a photocopier lease?

You need to be trading for 3 years and have reasonable accounts and be over the age of 18.  The dealer may ask you to provide up-to-date accounts, the previous accounts or to sign a director’s guarantee depending on the strength of your accounts.

How to get out of a photocopier lease?

Photocopier leases are fully binding and you can’t get out of them, I have on occasions helped a customer get out of a lease because the dealer did such a bad job. But this is very rare, even if you have been severely ripped off or even fraudulent acts.

Should I have bunded service or maintenance into a copier lease?

As a rule, DO NOT HAVE ANY COPIES INCLUDED IN THE LEASE.  It won’t cost you any more, it advantages the dealer never you.  You always want to have a lease then a service agreement that is just per copy or print.

Sometimes a dealer my give you some prints to close the deal.  This is fine if it just added on to the service agreement as a lump sum (i.e. Free first 50000 mono and 5000 colour).  Just ensure its in writing on the agreement or an email, or forget the sales person said it, as you probably won’t see it.

Who gets the equipment at the end of the contract?

The dealer will have an agreement with the lease company to get the machine back for a nominal fee. If you negotiated at the signing of the agreement to keep the machine (in writing) at the end of the term you will be able to retain the machine at the end of the agreement.

Photocopier Leasing Contract

TIPS before leasing a photocopier

Get quotes to compare and ensure you get a great price

Ask about the terms and the projected costs

Don’t just automatically resign with your existing provider, shop around. At the very least it will get them to reduce their offering

Get the FULLY completed contract before you sign and keep it for a few days and read over it and understand it.

Put a line through any blank boxes

Make sure it has all the copier accessories/options you asked for noted

It says the machine is “NEW” (if it’s a tick box, cross out the other box to make sure!)

It says they will settle the old photocopiers lease (if that’s what you want)

Lastly but very important: take copies of the signed contract before you send it back

Or use the Bizpare® to help you.

Rolling Copier Leases

When you take out a photocopier lease you take that machine for that MINIMUM period. So let’s say you are paying £200 per qtr over 20 quarters, £4000 is the minimum amount you will pay for that machine. This includes interest, so if a photocopier salesperson says let’s upgrade your machine 10 quarters in, you’re still liable for the remaining £2000. What usually happens is the sales person will put the remaining amount of the lease into the next lease, effectively paying double interest on the remaining £2000. So if you were to pay £3500 for the new machine you’re now paying over £5500 for the new machine.

ASK YOURSELF

Do I need to change my multifunction machine part way through? (you may need to because of machine problems, service problems, it may work out cheaper etc)

What are the lease settlement costs?

What will be better?

Settling

YOU are responsible for the lease payments until it all settled and completed. Make sure you take ownership of any settlements as if the photocopier dealer doesn’t settle it you’re still responsible. I have seen this where the sales guy has said verbally he will end the contract and the customer has ended up with 2 leases and 2 machines.

Get it in writing they will settle the lease and that’s part of the agreement and condition of the order.

Is a leased photocopier machine the company’s property?

YOU are responsible for the copier machine but you do not own it until you get title. This is then covered by the service contract, to ensure it keeps running properly. So make sure it’s written in the terms everything you need to have a good experience.

If anyone takes the photocopiers from you, you’re still responsible for it to the lease company. Some dealers have terms you can’t move it without informing them. In fact you are responsible for any items on the lease (even the “free printer” if it’s listed).

You also need to give it back at the end of the lease in good repair, some dealers have in there terms that to do this you pay the costs to get the machine up to standard.

What is the photocopier dealer commitment?

Guaranteed 4 hour average response time meanings nothing! You need in writing the maximum time and the consequence for it to mean anything.

Ensure that all parts, toner, call outs, IT, setup and training are included.

What is the Lease Admin Fee?

All leases have an admin fee (up to £200 paid in the first payment), make sure you know how much this is as most copier salespeople do not put this in the quote. But it will be in the contract terms!

You can negotiate this, most dealers will have the option whether or not to charge it if it means losing the deal.

TIP to get out of paying the Lease Admin Fee

The best way to get this payment knocked off is to wait until you get the contract and say its wasn’t in the quote and you won’t sign it because they didn’t tell you about it. You will soon find you make a saving!

What is the Order Form Contract?

This protects the dealer so that if you agree to take the machine and then something goes wrong they’re protected. Be aware that cancelling these can have a fee attached. So before you sign anything to ensure you have all the information and are happy with your choice. I have also seen terms that say if they can’t get the machine on a lease you’re liable for the cash value, one to watch out for!

What is a photocopier Service Contract?

This is the dealer’s responsibility to you to look after the machine and keep it up and running during the life of the lease. But it’s quite often more expensive than the lease. You should be careful to understand everything contained.

TIPS on negotiating a photocopier Service Contract

Ask for a contract that the CPC is static for 3 years, then is capped to 5% or better thereafter

Agree on terms before you sign anything

Ensure you have a level of expectation in writing that the dealer has to reach when providing a level of service

Make sure you have looked at the estimated amount of copies you will do for both mono and colour

Produce a spreadsheet showing all the costs and the increases as the terms indicate to get a clear picture.

Estimate the growth over 5 years so know you can afford the costs.

Check the machines “average month duty” (the monthly prints ON AVERAGE, not MAXIMUM monthly prints the manufacturer recommends) against your projected increased copies to ensure a good lifetime experience.

Stay away from copy inclusive contracts and minimum billing agreements as these rarely benefit you and will mean you pay more in the long run and you are more likely to be unsure how it works and how to control costs.

What do I need to know about a photocopier Service Contract?

Copies

You usually pay a cost per copy or per print that is to cover toner, call outs, parts, labour, etc. Colour is more expensive than mono to print for the dealer and this is usually reflected in the price.

Although the cost per copy may seem small it soon adds up, 1p per mono may not sound like much unless you’re doing 100,000 per month (£1000)

Minimum billing is you have a minimum cost per month instead of a completely variable plan that just charges with what you use. This means no matter how little a number of copies you do you will pay a minimum amount.

Toner

Most dealers work their prices out based on 5% coverage of the page. If you’re printing 50-60% coverage the cost rises significantly for the dealer. Most dealers will have maximum toner use terms which protect them from losing money. So if you’re regularly printing full page documents you need to be aware of these terms as you can find yourself getting billed for the additional toner you’re using.

Increases

Most dealers have on their terms and conditions the ability to raise prices over the course of the contract. From as little as 5% starting after 3 years or I have seen as much as 20% every 6 months. If you have 5-year contract rising 20% twice every 5 years you are going to be paying a significant amount more per month.

Start

0.01

6 mths

0.012

Yr 1

0.0144

6 mths

0.01728

Yr 2

0.020736

6 mths

0.024883

Yr 3

0.02986

6 mths

0.035832

Yr 4

0.042998

6 mths

0.051598

By putting all the costs into a spreadsheet that calculates the increases and terms you can see how you will be affected.

Per scan

Ricoh and a couple of other manufacturers, the machines can be setup per scan instead of per copy. This means that one colour print clicks 3 colour and one mono click. Check your paperwork and the machine when it arrives to see how you’re configured. I have seen many reputable dealers making a lot of money from this and not giving refunds (or limiting refunds). So it’s worth checking early on.

Where can I lease a copier locally in the UK?

They can easily be bought or rent locally near me in Bradford, Bedfordshire, Berkshire, Birmingham, Bristol, Buckinghamshire, Bolton, Cambridgeshire, Cheshire, Cardiff, Cornwall, Cumbria, Coventry, Derby, Derbyshire, Devon, Dorset, Doncaster, Durham, Dudley, East Riding, Edinburgh, Essex, England, Fife, Gloucestershire, Glasgow, Hampshire, Hertfordshire, Huntingdonshire, Kent, Lancashire, Leeds, Leicestershire, Lincolnshire, Liverpool, London, Merseyside, Middlesex, Norfolk, Manchester, Newcastle, Northamptonshire and Northumberland.
You may want a local dealer for a colour photocopier in Nottinghamshire, Oxfordshire, Plymouth, Rutland, Rotherham, Sandwell, Sheffield, Shropshire, Somerset, Solihull, Staffordshire, Suffolk, Sunderland, Surrey, Telford, tyne and Wear, Warwickshire, Wolverhampton, Westmorland, Wiltshire, Worcestershire, Sussex, Yorkshire, Merseyside, Middlesex, Norfolk, Northamptonshire, Northumberland, Nottinghamshire, Oxfordshire, Rutland, Scotland, Shropshire, Somerset, South Yorkshire, Staffordshire, Stoke-on-Trent, Suffolk, Surrey, Swansea, Tyne and Wear, Walsall, UK, Warwickshire, Wales, Westmorland, Wiltshire and Worcestershire – Bizpare® is the best way to lease.

What lease types does Bizpare® offer to schools?

How much does it cost to lease a photocopier?

Most leasing companies prefer you pay for leasing quarterly in advance. This is not to say you can’t pay monthly, but lease companies will require you to pay a few percent higher to do so. You are also required to pay a document fee, this can be waived by some companies usually £100 to £180. Some companies also charge annual fees and missed payment fees etc There will also be a payment of a minimum of £50 to retain the equipment at the end of the term. Here is a guide to the kind of costs you can expect to pay for leasing:

Entry level

£30 to £300 per month or £90 to £900 per quarter

Desktop

£20 to £46 per month or £60 to £138 per quarter

Multifunctional photocopiers

£20 to £325 per month or £60 to £975 per quarter

Industrial

£430 to £1’500 per month or £1290 to £4500 per quarter

Colour photocopiers

£20 to £325 per month or £60 to £975 per quarter

Mono photocopiers

£20 to £290 per month or £60 to £870 per quarter

Floor standing copiers

£20 to £325 per month or £60 to £975 per quarter

These will vary depending on the configuration and functionality to add to the machine.

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