How to Know if Copier Leasing Is the Right Solution for Your Company
Deciding whether to purchase a business copier outright or commit to a lease is one of the most critical financial decisions any small or large business must make. Every dollar spent counts, and choosing the wrong path can tie up capital or leave you stuck with obsolete equipment.
While the digital age is here, the need for physical documents remains strong—from invoices and contracts to secure, sensitive documents. The question isn’t if you need a reliable multifunction printer (MFP), but how you should acquire it.
What is Business Copier Leasing?
Copier leasing is a contractual agreement that allows your company (the lessee) to use a brand-new copier or MFP for a set period in exchange for manageable monthly payments to the leasing company (the lessor).
- Typical Term Lengths: Unlike short-term rentals, standard business copier leases usually range from 36 to 60 months (3 to 5 years). The longer the term, the lower your monthly payment.
- End-of-Lease Options: When the term ends, you typically have three main choices: return the copier, renew the lease, or upgrade to a newer, better machine.
Copier Leasing vs. Buying: A Quick Comparison
To determine if leasing is the right solution, it helps to compare the two options side-by-side.
| Feature | Copier Leasing (Operating Lease) | Buying Outright |
| Initial Cost | Low to None (Preserves working capital/cash flow). | High (Requires a large capital expenditure upfront). |
| Maintenance/Repair | Included in most agreements (part of a Managed Print Service package). | Unpredictable (You pay for all parts and labor when they break). |
| Technology Upgrades | Easy to swap out for newer technology at the end of the term. | Difficult/Expensive to replace. Risk of outdated technology. |
| Tax Implications | Payments are typically 100% tax-deductible as an operating expense. | Requires depreciating the asset over several years. |
| Balance Sheet Impact | Off-balance sheet (Historically, now recorded as a Right-of-Use Asset). | On-balance sheet (Asset and Depreciation). |
Financial and Strategic Benefits of Copier Leasing
If the following five benefits address your company’s core needs, leasing is likely the ideal solution:
1. Preservation of Capital
This is the number one benefit. High-quality MFPs can cost thousands of dollars. Leasing eliminates the need for a huge capital outlay, freeing up your cash reserves to invest in other critical areas of your business, such as inventory, staffing, or marketing.
2. Fixed, Predictable Budgeting
Leasing provides a fixed monthly expense for the equipment, and when combined with a service agreement (which is standard), your monthly budget for printing and maintenance is entirely predictable. This simplifies financial planning and eliminates the stress of unexpected, costly repair bills.
3. Stay Ahead of Technology Obsolescence
Copier technology, especially regarding security and cloud connectivity, evolves rapidly. A 60-month lease on a machine can leave you with outdated security features by year four. Leasing allows you to cycle out the old equipment and easily upgrade to the newest models with better features and more robust security (like secure print release) when your term is complete.
4. Tax Advantages (Operating Expense)
For many businesses, the IRS classifies an Operating Lease (Always consult with a qualified tax professional regarding the specific treatment of your lease agreement.) (or Fair Market Value lease) as an operating expense, meaning the full monthly payment is often 100% tax-deductible. This provides a larger, faster reduction in taxable income compared to buying, where you can only deduct the depreciation of the asset (Always consult with a qualified tax professional regarding the specific treatment of your lease agreement.) over its lifespan. (Always consult a tax professional for specific advice.)
5. Hassle-Free Maintenance & Support
Most reputable leasing agreements include a Managed Print Services (MPS) contract. This means you gain the expertise of a professional service team who handle:
- Proactive maintenance and repairs.
- Toner and supply replenishment.
- Technical support and training.
- Result: Minimized downtime and maximum productivity, which is crucial for small teams with limited IT resources.
Understanding Copier Lease Types
When you decide to lease, you will generally be offered one of two financial structures:
| Lease Type | What It Is | Who It’s Best For |
| Operating Lease (FMV) | Treated as a True Rental. It has lower monthly payments. At the end, you can return, renew, or buy the machine at its Fair Market Value (FMV). | Most small businesses prioritizing tax deductions, low monthly payments, and regular technology upgrades. |
| Capital Lease ($1 Buyout) | Treated more like a Financed Purchase or loan. It has higher monthly payments, but you own the equipment for $1 at the end of the term. | Companies with long-term equipment needs and those that prefer the tax benefits of depreciation. |
Ultimately, copier leasing is the right solution for your company if you prioritize cash flow, predictable budgeting, included service/support, and the flexibility to upgrade to the latest technology.
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.
