Photocopier Leasing & Photocopier Rental

Here we investigate the pros and cons of photocopier leasing and photocopier rental and present a few tips on what questions to consider asking when you are looking to lease a photocopier.

Lots of companies find that leasing a photocopier can be a more cost effective way of meeting their printing & copying needs than the outright purchase of a machine.  If you lease your photocopier you can help to spread the cost of ownership and also ensure that everything continues to run smoothly, as many leases also often include a maintenance plan.  Generally a lease refers to a longer term rental period, whereas short term photocopier rental is certainly more flexible, but do expect to pay more than you would for a normal lease.

The benefits of photocopier leasing

Tax Efficiency

Leasing a photocopier is more tax efficient than buying a machine outright.  When buying a machine, companies will usually have to write this off as a capital expense and can therefore only claim a certain percentage of this back against profits. In most cases, photocopier leasing and rental agreements can be 100% offset against pre-tax profits.

Fixed Costs

When you rent or lease, there's a fixed, monthly cost, agreed with your supplier.  This makes it easier to factor into your yearly budgeting. Leasing contracts can also include the costs of installation, maintenance, other office equipment and even staff training, which reduces further your capital outlay.

No Capital Outlay

For many businesses keeping an eye on their cash flow and budgeting can be difficult, so for many the prospect of spending several thousand pounds for a new photocopier simply isn't possible.  In our present financial climate, preserving your credit is vitally important and therefore leasing agreements can help to reduce the risks associated with capital expenditure.

Ability to upgrade

As businesses grow and develop, their requirements to keep up to date with technology grow too. When leasing a copier, most suppliers will allow you to upgrade to a more 'up market' model to meet your demands. In doing this you will incur an increase in your monthly costs, although you won't have the worry of having to sell the old machine or need to find the capital to finance a new one.

Flexible lease period

Good suppliers will offer lease periods from anywhere between 1 to 5 years and will tailor this to suit your requirements. Short term hire agreements of 6 months and below should also be available for businesses that have more temporary needs.

Disadvantages of Leasing and Renting

We have seen the many benefits of renting and leasing your copier. However there are also a few disadvantages, which may make it more cost effective for some businesses to purchase their photocopier outright.

Ownership

You don't ever get to own the copier.

Obligations

You are tied into the contract, so if your usage isn't as much as you thought it would be, you still have to pay for it for the length of the agreed term.

Expense

In the long run, leasing a photocopier tends to be more expensive than buying a machine outright at the start.

Cost effectiveness

If you use less than 1000 copies a month, a lease may be less cost effective than buying a small desktop copier.

A few Questions Answered

Question: Is the servicing and maintenance of the photocopier usually included within most leasing contracts or will I have to reserve additional budget to cover these costs?

Answer:Many companies will offer photocopier servicing alongside a leasing contract.  However these are usually specified in the contract as two separate things.  Good leasing companies will offer you a service agreement at the start of leasing the copier from them. If you're unsure and already in a leasing contract, then if you're not aware about, or paying extra for anything, it's probable that servicing isn't included within your leasing contract.

Question: What's the difference in the UK tax allowances if I were to lease or rent a photocopier as opposed to buying a machine outright?

Answer: Good question!  The answer is the fundamental reason why many companies opt for photocopier leasing over outright purchase.   If you buy a photocopier then it's usually written down as a capital allowance. For most businesses HMRC allow you to claim 40% of the purchase price in the first year and 25% over subsequent years. This could be even more if you're a new start-up company.

However, if you lease a photocopier the monthly costs are 100% tax deductible as the leasing company still owns the copier and therefore it's counted as a service that you're buying in.

Question:  So what type of copier do I hire?

Answer: You'll need to know what type of copier you want before you can secure the best deal.  Be sure to ask yourself the following questions from this check list in order to narrow down your search,before you talk to a dealer.

  • Do you need a black and white or a colour machine?
  • What speed of copier do you require?
    Ensure the copier will run at a speed to match your requirements. The speed is measured in ppm, (pages per minute) 15ppm for a slower specification model or over 60ppm for a high speed machine.
  • How many copies do you intend to make per month?
    Under 5,000, 5,000 to 10,000 or over 10,000?
  • What sizes and/or types of paper do you use?
    A1, A2, A3, A4, A5, A6, transparencies, envelopes, etc.
  • What extra features do you require?
    Scanner, fax, double-sided printing, stapling, sorting, binding etc?
  • How long do you envisage hiring the copier for?

Question: So what do I need to ask the dealer?

Answer: Although you may only intend to hire a copier it's still worth approaching the dealer in the same way as if you were going to buy.  Here are a few key questions that you should ask any dealer before making a final decision.

  • Are you an authorised dealer?
  • What makes and models do you stock?
  • What are the minimum and maximum hire periods?
  • Can the initial hire period be extended?
  • Can I buy or lease the machine at the end of the hire period?
  • Does the cost include service and support?
  • Do you offer free delivery and installation?
  • In the event of a breakdown how quickly can you get out to fix it?
  • Are the technicians fully trained by the manufacturer?

Question:What's it going to cost me?

Answer: The cost depends on the type of copier that you require and the length of the hire period.  Good providers will sit down with you to look at exactly what your requirements.  They should also advise you on the cheapest options to meet these requirements

  • Paragon Comment

Paragon Document Solutions will guide you every step of the way on the approach that you need to take to get the rental agreement that best suits your business.  In these financially difficult times, companies can avoid investing their capital in the buying of very expensive equipment like multifunction machines for example. Renting will offer many benefits, although you do need to have some idea what you are looking for, before you enter into a photocopier rental contract.  We will of course give you advice on everything from the manufacturer that you choose, to the budget you will need to have available for photocopier rental.  However, 'forewarned is forearmed' as they say, so come to us with some clear ideas and this will make the process simpler for you.

So try to consider…

  • The functionality you need and your estimated copying volume requirements
  • Your preferred method of payment
  • The length of contract that you require. (This could vary from one to five years; three years is probably the most practical and cost-effective option.)

Conclusion

As with any product or service, shopping around is really imperative and you should shortlist several reputable suppliers before considering entering into a photocopier rental contract.  This is a competitive business and whilst there are many good suppliers, the contracts that they offer you can vary greatly, and so can the cost!.  Before you sign your contract you must be totally sure that you know the full facts and details of the agreement you are embarking upon, and particularly the costs. Often a common complaint among businesses is the hidden or unexpected costs, which they have failed to scrutinise adequately enough before signing their contract.  Lastly, look at the detail with any contract you sign and check it is complete, that the quoted rental period is correct, that you understand and agree to all the terms and most importantly, that every cost has been detailed, leaving no nasty unexpected charges.  By following all the above guidance you will become more aware and more able to make an informed decision, allowing a seamless and trouble free contract.

  • Paragon Comment

There is some excellent advice here, once again. Paragon are the photocopier company you can rely on. We offer a premier, flexible photocopier leasing service which allows you to take advantage of all the benefits photocopier leasing can provide. We have 50 years of collective industry experience which is why we know exactly what it takes to offer our customers the best customer service possible. We are a market leader in photocopier leasing and offer great deals, not just on photocopier leasing, but on a range of other services too.  If you choose Paragon, you will get one dedicated and experienced consultant as your primary point of contact for any queries you may have.  We are proud to only supply our customers with the most efficient innovation on the market at the time their photocopier leasing agreement begins.  We have a wide range of photocopiers available in our photocopier leasing service from the likes of Toshiba, Canon and Kyocera. Our photocopier leasing agreements offer you 1 to 5 year lease periods, deferred payments of 6 months and the option of ownership at the end of the lease agreement.  Our flexible photocopier leasing service also allows you the option of upgrading your lease should your circumstances change at any point during the leasing period.

So why not call Paragon today on 0800 357 677.

Contact us

To discuss all your photocopier leasing needs contact us, or email info@paragon-ds.co.uk with any questions or queries you may have about our photocopier leasing service.

Your local photocopier leasing company:

Paragon are the photocopier company you can rely on:
Serving, London, Surrey, Essex, Kent, Middlesex, Hertfordshire & Nationwide

Request a call back

We will match any other photocopier leasing price, guaranteed!
Lease a photocopier, get a FREE ipod nano!
Find out how Paragon can efficiently & effectively transform your document environment and your business!