Although the corporate world is evolving to become more digital, some equipment is still essential for effective office operations.
One such essential tool is the copier.
Contrary to what many people believe now, a copier is still very much needed in an office setting. Yes, you can duplicate files online and send them to colleagues or superiors.
But what happens when you also need to share copies of a document in hard copy?
You may not want to own a quality copier because it can be too expensive, especially if you own a small business. For example, copiers cost quite a lot in Malaysia.
Fortunately, this is where copier leases come into play. You can lease a copier for your business within a duration of time. It is cheaper to lease a copier than to buy one.
But the big question is, “How do copier leases work?”
This comprehensive guide will look into how copier leases work and the key components of copier lease agreements.
Read More: How To Calculate Copier Lease Rates
How Does a Copier Lease Work?
A copier lease is typically an option to hire a copier machine over an agreed period.
This is similar to copier renting, as the lessee may be financially incapable of purchasing a leasing machine at once, or it may be way beyond their budget.
However, copier renting is only done for a short term. Leasing is for the long term.
Leasing a copier is preferable for most firms as it is more cost-effective. The average copier lease lasts 24-60 months.
Related: If you are stuck with a copier lease that no longer serves you well, you can consider a Copier Lease Buyout.
Leasing a copier machine works in 3 different ways:
Fair Market Value
This type of leasing is usually done in a situation whereby the lessee does not intend to have any ownership of the copier after the lease contract has expired.
Fixed Purchase Option
This is also called a “Capital Lease”. This type of leasing offers the lessee the choice to buy the machine at the end of their lease terms at a price that was agreed upon at the time of leasing.
Read further: What Happens at the End of a Photocopier Lease
Instalment Purchase
This type of leasing is best for companies that are assured of their choice to buy the copier machine. Here, the lessee will be required to pay within a few months but in instalments.
What is a Copier Lease Agreement?
A copier lease agreement is a contractual arrangement between a lessee (the business or individual needing a copier) and a lessor (the entity providing the copier).
This agreement outlines the terms and conditions governing the lease of a copier.
Key Components of a Copier Lease Agreement
Every copier agreement must contain important components. Without clear specifications, the agreement may not be valid.
Lease Duration and Terms
The agreement should specify the duration of the copier’s lease, which could range from a few months to several years.
This component is crucial, as it dictates the period when the lessee can access the copier.
Equipment Specifications and Capabilities
Detailed specifications of the copier are outlined, including features, functionalities, and any additional accessories.
This ensures that the lessee knows precisely what equipment they are leasing and whether it aligns with their operational requirements.
Maintenance and Support Services
The agreement typically addresses the responsibilities of copier maintenance and support.
Clear communication on who bears the costs of repairs and the extent of support services is essential for avoiding potential disputes during the lease period.
A well-crafted copier lease agreement acts as a roadmap, guiding both parties through the leasing process. Businesses must scrutinize the terms to ensure they align with their operational needs and financial constraints.
Conclusion
The most important factor in leasing a copier machine is your budget, which is influenced by many other factors, such as term length and other lease details.
The term length significantly influences the budget because the higher the number of years, the less it would cost to lease a copier, and vice versa.
Some other specific features, such as a copier with a coloured printer or an in-built stapler, can also affect the overall budget.
However, leasing a copier is cheaper and more flexible than a cash purchase.
Now you know how a copier lease works, you can now rent a copier with ease.
At The Copier Guy, you can get better-quality copier leases at an affordable rate. You can also rent copiers and negotiate a favourable agreement for your business. Contact us to get a quote or chat with one of our experts.
Related Articles
- How To Negotiate A Copier Lease – Learn how to negotiate your copier lease to get the maximum benefits
- How To Get Out Of A Copier Lease Agreement – 6 ways you can try to get out of your current copier lease that is not serving you well
