graphic savings group blog

Copier Lease Calculator

If you're looking for a ballpark estimate of what your copier lease might cost, a great place to start is a lease calculator.

The link above takes you to a calculator that will let you figure out your approximate monthly payments based on interest rate and the amounts involved. It lets you factor how many payments you want to make, what the residual amount will be, and the interest rate on your equipment lease. More importantly this lets you know the class of copier you can afford to lease.

You should always have an idea of the costs of a given copier lease because then you can budget accordingly and assess the numbers offered to you by an equipment leasing broker. It's important to be able to assess your expected revenue according to print runs in relation to your costs. 

If you're considering a copier lease, please consider the Graphic Savings Group.

The link above takes you to a calculator that will let you figure out your approximate monthly payments based on interest rate and the amounts involved. It lets you factor how many payments you want to make, what the residual amount will be, and the interest rate on your equipment lease. More importantly this lets you know the class of copier you can afford to lease.

You should always have an idea of the costs of a given copier lease because then you can budget accordingly and assess the numbers offered to you by an equipment leasing broker. It's important to be able to assess your expected revenue according to print runs in relation to your costs. 

If you're considering a copier lease, please consider the Graphic Savings Group.

Cash Flow in Copier Leasing

You have to consider cash flow when you are considering a copier lease. An equipment lease is often the best way to mitigate a tight cash flow in the startup phase of your business. There might just be even more leeway than you think in a copier lease.

Standard Lease

A standard lease typically requires the first and last payment up front, and then equal payments for the term of the lease. The lease term is likely anywhere from 2 to 5 years.

Step Up Lease

A step up lease is sometimes structured around higher priced equipment, such as digital copiers or printers. Payments begin at a very low level and then step up over the course of the lease to a higher, regular payment. The step up lease is designed to help startups receive the latest equipment without adversely impacting cash flow.

Deferred Payment Lease

A deferred payment lease usually offers the lessee a period of time, typically 90 days, before the second payment is due. Therefore, a copier lease might featured a deferred payment to allow a startup business to generate revenue.

There are a variety of options at the end of each of these leases. If you're considering an equipment lease, consider the Graphic Savings Group.

Standard Lease

A standard lease typically requires the first and last payment up front, and then equal payments for the term of the lease. The lease term is likely anywhere from 2 to 5 years.

Step Up Lease

A step up lease is sometimes structured around higher priced equipment, such as digital copiers or printers. Payments begin at a very low level and then step up over the course of the lease to a higher, regular payment. The step up lease is designed to help startups receive the latest equipment without adversely impacting cash flow.

Deferred Payment Lease

A deferred payment lease usually offers the lessee a period of time, typically 90 days, before the second payment is due. Therefore, a copier lease might featured a deferred payment to allow a startup business to generate revenue.

There are a variety of options at the end of each of these leases. If you're considering an equipment lease, consider the Graphic Savings Group.

Digital Copier Leasing: The Basics

Before you sign the dotted line, ask for a break down on the numbers of your copier and copier lease. You should know exactly what you are paying and at what rate. Often, a manufacturer might knock down the price of a digital press because the interest you'll be paying on the attached lease will bring in significantly more money. Always ask for the following when negotiating a lease.

What is the Interest Rate?

How much are your paying for your copier and how much are you paying in interest? Ultimately, a lease only makes sense if the costs are appropriate for the equipment you are getting.

What's the Buyout Option?

You should know exactly what happens to your machine at the end of the lease. Many leases will return the equipment to a dealer or manufacturer by default unless you know to ask about buyout options. Decide if you'll want the equipment at the end of your lease terms and what you would be willing to pay for it. Then, negotiate accordingly.

Length and Exact Terms of the Lease

Exactly how long is your lease and what is your payment schedule. Get a breakdown in writing, and find what the penalties are for defaulting or missing a payment to prepare for the worst case scenario.

Consider alternatives

A dealer or manufacturer may not be able to offer you the best rate, in fact, it's likely in their interest to offer you a higher rate.  That's why you should always get a competitve quote. You might be suprised at how much more you would have paid for equipment and how much you can save.

When looking at leasing a copier, consider Graphic Savings Group as one of your options.

Master Lease and Leasing a Copier

When looking into leasing a copier, you have to look at when you'll need capital and the size of your equipment lease. If you're looking at staggered purchases of copiers or office equipment, then a good option for you might be a Master lease.

A Master Lease offers a line of credit that can be used by a company over the course of a year to purchase equipment. A master lease as an equipment lease is a great way to cut down on paperwork and speed up the acquisition process. It only requires one set of lease documents with a schedule set for equipment acquisitions. Having an open line of credit also allows you to act on unexpected demands and make sure that you have the capital on hand to upgrade technology.

If you're considering a copier lease, please consider the Graphic Savings Group.

Benefits of Copier Leasing

You have worked hard for your money, perhaps it is time your money put in some work for you. In fact,  your money might serve you best if you choose to lease equipment. Here are a few of the benefits of leasing a copier.

Improve Your Cash Flow

Your money is not married to your equipment. That means you have cash on hand for expansion & marketing opportunities, or in a pinch.

Upgrade with the Times

A lease allows you to continually upgrade your fleet or single machine. Lease the latest equipment and wait for the brand new machines to come down in price.

Hold Credit in Reserve

You will retain a line of credit for short-term financing or potential deals.

Tax Benefits

Contrary to loan payments;  lease payments are completely tax deductible.

If you're considering leasing equipment, we hope you'll contact us at JJ Bender, or at our sister company, Graphic Savings Group, which specializes in cash flow management and lease consulting.

Copier Leasing on a Budget

Copier leasing might be the answer for helping you manage your budget. The cost of office supplies can be a sore subject for many small business owners. While some dismiss it as just the 'cost of doing business,' the smart managers realize that frugal office management can translate into real savings that increase the bottom line. 

Leasing a copier is one way to eliminate a huge portion of your office budget and potential cost liability. The key to creating a budget is having a fixed set of costs. A copier lease allows you to set monthly payments and avoid costly per-click charges. Many copier leases also offer service alternatives to the manufacturer, allowing you to determine how and when you want your equipment serviced.You can eliminate suprises in your monthly bill by eliminating spikes in copier costs.

If you're considering a copier lease, please consider the services of the Graphic Savings Group.

Copier Leasing Structure

A copier lease can be structured in a number of ways and the key to a successful lease is arranging the contract to benefit your corporation. If you need to lease a copier, look at maintenance and the cost of supplies first. There are five major ways that a copier lease will be organized.

1. Copier Lease Payment plus the maintenance cost per copy and cost of supplies.

Here all of the costs for maintenance and supplies are in addition to the monthly or quarterly payments on your equipment.

2. All-Inclusive Equipment Lease Payment 

This is a lump sum lease, which means that all of your costs are fixed- great for budgeting.

3. Copier Lease Payment plus the maintenance cost per copy (which includes supplies)

Here, your charges are directly relevant to the number of clicks, or copies, that you make with supplies being a fixed cost.

4. Equipment Lease Payment plus a flat rate for maintenance and supplies

Here your costs are fixed, even if maintenance and supplies are additional. This is a good option for someone who is doing a large volume of copies.

5. Copier Lease Payment plus a flate rate for maintenance (which includes supplies)

Each has benefits, either in the form of controlling costs or budgeting. The key is to assess your needs based on volume. All manufacturers have tables that can give you service estimates according to usage.

If you're looking to lease a copier, please consider the Graphic Savings Group.

Copier Leasing Costs

The key to managing and understanding copier leasing costs is to break things down according to each aspect of equipment. In other words, what are the costs of the equipment? what are the costs of supplies? what are the costs of service? and what are the financing costs?

Once you have a number for each of those options, you can assess how much your digital copier is actually going to cost you per month. The key is to make sure that a copier manufacturer or equipment vendor doesn't bundle together the costs, masking the true costs of your equipment.

If you're considering a copier lease, please consider the Graphic Savings Group.

Cost Per Copy Lease

A cost per copy program can be structured exactly like a copier lease, or it can be more informal, working like a month-to-month rental.

Cost per copy programs, otherwise known as cost per print, are available for machines of all sizes. While there isn't a cost per copy program yet for the Xerox iGen3, there are cost per print options on the Xerox 2060 and Xerox DocuColor 12.

The key to determining whether a cost per copy lease is right for you is based on your expected output. If you're looking for a low-cost, supplies-inclusive contract, a cost per copy deal might be the right option. Often the cost of service and supplies are fixed as part of your cost per print arrangement; however, be sure and ask as you don't want to be stuck with a huge bill for toner or parts. You should also ask if there is a base charge for service or. Another question to consider is what happens to the machine at the end of the deal. Do you take ownership of the digital copier? Does it revert back to the vendor?

In the right situation, a cost per print program can be a low cost alternative to owning or leasing a digital copier. If you're considering cost per copy options, please consider talking to the Graphic Savings Group.

Copier Leasing and Sarbanes Oxley

The impact of Sarbanes Oxley on copier leasing with regard to financial disclosures can be confusing. Scott Harman, a technology writer, has done a good job of outlining the basic issues in a recent article.

Please keep in mind that this article is a PR piece; however, the value lies in Harman's discussion of Sarbanes Oxley in the context of copier leasing. He notes the ways in which a lease may be closer to a sale and thus treated as such by the government. If a deal is categorized as a sale rather than a copier lease, it can reduce the potential tax benefits and force a company to recognize its assets differently.

If you're looking into copier leasing and have questions about the potential tax implications, please consider talking to the Graphic Savings Group.