After thorough thinking, you decided to avail of copier leasing services. You considered all your copier needs and solicited proposals from copier leasing companies. You agreed to one and meet with them for contract signing. They gave you a service agreement and a copier lease you should fill out and sign. You may feel uncomfortable as it is your first time handling such a document. You are not familiar and sure; the paper looks intimidating to you.
Worry no more! Let me introduce you to the copier lease and the things your package must have included. We guarantee your confidence in signing your copier lease agreement after this.
To begin with, let us find out what is a copier lease. It is a contract that binds you with a leasing company or other financial institutions. These institutions will hold you to the payments of your copier for as long as you have it. The program will allow you to pay for the machine toward the eventual goal of owning it or trading it for a newer model.
But, a copier service agreement is a contract you sign with a copier leasing service in Reno. It is the agreement of the services that they will give to you and the price that comes along with it.
Take a look at these things to make sure you are aware of what you are getting in. Your lease or service agreement must include the following information:
- LESSOR. Your provider will choose your lender, also known as the lessor. They will select them based on who among them will offer the most favorable interest rates. Your company will also assess who will most likely approve your credit. You need to know your copier leasing company.
- LEASE TERM. The paper should state the period you agreed to use and pay for the copier. Leases can stretch from 24 to 60 months. Your provider must explain that longer leases mean lower monthly payments. They should tell you about the lease length based on volume, type, and the brand of copier you are getting.
- PAYMENTS. The total computation of your monthly remittance must reflect on the paper. You should be aware that its basis is the machine’s value divided by the lease term and the interest.
- REBATES. Copier manufacturers offer promotions from time-to-time to boost their copier leasing services agreement. Your provider must inform you of any rebate programs.
- FAIR MARKET VALUE. In Reno, it is common to sign a copier leasing agreement that gives you the option to buy the copier. Companies opt to buy a copier at the end of a shorter lease term. The bank determines its final sale value. It ranges from 20%-30% higher than the original machine price.
- WARRANTY. Most agreements will say the lease does not contain an equipment warranty. Your service contract from your copier dealer will include this.
- INTERIM RENT. Lenders create billing cycles or specific payment due dates such as the 1st or the 15th of the month. If your copier arrives before the first billing cycle, you will have to pay an interim rate. It is to cover the time you had the copier before the set start date of the contract.
Please take note of these tricky business clauses such as:
- AUTOMATIC RENEWAL. It is a complete nightmare. When your lease term is about to end, you need to notify your provider of your intention to return the equipment. They should inform you of that.
- $1 BUYOUT OPTION. Some providers of copier leasing services in Reno will allow you to buy the copier for $1. It is an exciting offer, yet it could cost you more on your monthly payment. It’s better to agree on smaller installments first and decide at the end of the lease term. That way, you will know the condition of your copier and whether your copying needs have changed.
- INSURANCE SURCHARGE. Your provider should tell you of any insurance surcharges. You can avoid this if you can show proof that your business insurance policy covers copiers.
Here are the last things you should consider:
- Is your vendor being helpful by explaining these terms to make sure you know what the signing is?
- Do you have their back by making sure you won’t stay stuck with lease terms that are not in your best interest?
All companies believe in transparency and integrity. Most will always be happy to tell you about your queries. Feel free to reach out to them.