Copier Leasing 101: A Small Business Guide to Costs and Cash Flow
Does your business need a reliable, high-volume copier but lack the upfront capital for a purchase? Leasing a copier can be an incredibly easy and budget-friendly way for small businesses to acquire essential equipment.
However, leasing is a financial decision with specific rules and terms. It’s vital to understand how leasing works and what costs are involved to determine if it is the right strategic move for your company in Kansas City.
How Copier Leasing Works (The Basics)
A copier lease is a contract between your business (the lessee) and a leasing company (the lessor) that allows you to use a machine for a fixed term in exchange for a set monthly payment.
- Fixed Terms: Lease agreements typically range from 36 to 60 months. Choosing the right term length allows you to balance lower monthly payments (longer term) against faster upgrade cycles (shorter term).
- Capital Preservation: Unlike buying, which requires a significant upfront investment, leasing keeps your capital free to invest in revenue-generating activities like inventory, marketing, or payroll.
- Flexibility & Upgrades: Leasing provides the flexibility to upgrade to newer technology at the end of the term, preventing your business from being locked into outdated equipment that slows down operations.
Key Advantages of Leasing for Small Businesses
Leasing offers several significant benefits that help a young or growing business manage both its budget and its technology needs:
- Preserves Cash Flow: Monthly payments are much more manageable than a one-time purchase price, making budgeting simpler and keeping cash reserves healthy.
- Tax Benefits: Depending on the lease type (see below), payments may be fully deductible as an operating expense, offering a better tax advantage than the depreciation schedule of owned equipment. (Consult your CPA for specific advice.)
- Includes Service & Maintenance: Most commercial leases are bundled with a Managed Print Service (MPS) agreement. This means that parts, labor, toner, and preventative maintenance are all included in one predictable monthly fee, eliminating surprise repair bills.
- Access to High-End Equipment: Leasing allows small businesses to afford high-speed, high-volume multifunction devices (MFPs) that would be prohibitively expensive to buy outright.
Understanding Copier Leasing Costs & Types
The total cost of your lease depends on the model’s speed and features, the lease duration, and the type of lease you choose.
The Two Main Lease Types
The biggest factor influencing your monthly rate and tax status is the lease type:
| Lease Type | Key Feature | Monthly Payment | End-of-Lease Option | Best For… |
| Fair Market Value (FMV) | True rental; the lessor retains ownership. | Lower | Return, renew, or buy at FMV. | Businesses that need to upgrade frequently (every 3–4 years). |
| $1 Buyout (Capital Lease) | Functions like a loan; you own it at the end. | Higher | Buy the copier for a symbolic $1. | Businesses that plan to use the machine for its full lifespan (5+ years). |
What Determines Your Monthly Cost?
The cost is typically structured in two parts:
- Hardware Payment: A fixed monthly payment for the equipment itself (influenced by machine model and lease term length).
- Managed Print Service (MPS): A separate monthly charge based on your agreed-upon print volume (e.g., $0.01 per black-and-white page). This fee covers your toner, parts, labor, and maintenance.
General Cost Expectation: An entry-level color MFP for a small Kansas City office might start between $100–$250 per month (not including the volume-based MPS service fee). High-volume machines can run $400+ per month.
General Service and Quote Requests
If you plan to get copiers for your office, you can buy copiers or lease copiers. We can give you options for getting the copy machine that you want. You can contact our local copier leasing services department in your location.
For all services, call Clear Choice Technical Services:
- Phone: (913) 203-1300
- For copier leasing, request a quote today.
- For short-term rental inquiries, request a rental quote.
For dedicated Copier Repair Services in Kansas, please visit our Repair Services Website for immediate assistance. Our network is powered by Clear Choice Technical Services.
