We can help you understand the pros and cons of leasing versus outright purchase of your office equipment.

How Do I Evaluate my Leasing Options?

A lease is a financing agreement that is structured to meet your organization's special needs. To decide if leasing is the best option in your case, you must first understand those needs and ask yourself these questions:

How does this equipment make my business more efficient and productive?
What is the most efficient use of our cash flow to pay for this equipment?
How long will we need this equipment?
What will your equipment needs be in the future?
Factor the cost of leasing into your evaluation. The cost of leasing is usually comparable to those of other financing options when looking at the whole transaction.

Leases take into account that the equipment is worth something at the end of the lease term. This is called its residual. Residuals are built into lease pricing, usually making the lease payments lower than a loan. To compare lease products, it is better to compare monthly payments than to try to compare loan interest rates with lease rates. On a cost-of-capital basis, leasing may be the least expensive option.

Leasing companies can offer competitive rates for a number of reasons. Lessors—with their volume purchasing power—can secure attractive financing deals and pass along the savings to the lessee. The lessor also is better able to take advantage of the deduction for depreciation expense that comes with ownership.

I Want to Lease My Equipment. How Do I Get Started?

Call (800) 222-6265 to schedule an appointment with your account representative. We’ll review your current equipment usage and costs, and develop a customized print management solution with one of our trusted leasing partners.

What are the Differences Between a Lease and a Loan?

A loan requires the end user to invest a down payment in the equipment. The loan finances the remaining amount.

A lease requires no down payment and finances only the value of the equipment that is expected to be depleted during the lease term. The lessee usually has an option to buy the equipment for its remaining value at lease end. By signing the lease, the lessee assigns his or her purchase rights to the lessor, who already owns or who then buys the equipment as specified by the lessee. When the equipment is delivered, the lessee formally accepts it and makes sure it meets all specifications. The lessor pays for the equipment and the lease takes effect.

A loan usually requires the borrower to pledge other assets for collateral.
The leased equipment itself is usually all that is needed to secure a lease transaction.

A loan usually requires two expenditures during the first payment period, a down payment at the beginning and a loan payment at the end.
A lease requires only a lease payment at the beginning of the first payment period, which is usually much lower than the down payment.

With a loan, the end user bears all the risk of equipment devaluation because of new technology.
With a lease, the end user transfers all risk of obsolescence to the lessors, as there is no obligation to own equipment at the end of the lease.

Loans may claim a tax deduction for a portion of the loan payment as interest and for depreciation, which is tied to IRS depreciation schedules.
When leases are structured as true leases, the end user may claim the entire lease payment as a tax deduction. The equipment write-off is tied to the lease term, which can be shorter than IRS depreciation schedules, resulting in larger tax deductions each year. The deduction is also the same every year, which simplifies budgeting (Equipment financed with a conditional sale lease is treated the same as owned equipment.)

For loans, financial accounting standards require owned equipment to appear as an asset with a corresponding liability on the balance sheet.
Leased assets are expensed when the lease is an operating lease. Such assets do not appear on the balance sheet, which can improve financial ratios.

With loans, larger portion of the financial obligation is paid in today's more expensive dollars.
With a lease, more of the cash flow, especially the option to purchase the equipment, occurs later in the lease term when inflation makes dollars cheaper.

What are the Benefits of Leasing?

Leasing offers numerous advantages over other financing methods:

Tax Treatment

The IRS does not consider an operating lease or a true lease to be a purchase, but rather a tax-deductible overhead expense. Therefore, you can deduct the lease payments from your corporate income.

Tax Benefits

Lessors can pass the tax benefits of ownership on to the lessee in the form of lower monthly payments. If you are in the Alternative Minimum Tax Bracket, a true lease will provide you with an attractive tax benefit.

Balance Sheet Management

Because an operating lease is not considered a long-term debt or liability, it does not appear as debt on your financial statement, thus making you more attractive to traditional lenders when you need them.

100 Percent Financing

With leasing, there is very little money down—perhaps only the first and last month’s payment is due at the time of the lease. Since a lease does not require a down payment, it is equivalent to 100 percent financing. That means that you will have more money to invest in revenue-generating activities.

Immediate Write-off of the Dollars Spent

The equipment does not have to be depreciated over five to seven years.


As your business grows and your needs change, you can add or upgrade at any point during the lease term through add-on or master leases. If you anticipate growth, be sure to negotiate that option when you structure your lease program.

Customized Solutions

A variety of leasing products are available, allowing you to tailor a program to fit your business needs.

Asset Management

A lease provides the use of equipment for specific periods of time at fixed payments. The lessor assumes and manages the risk of equipment ownership.

Upgraded Technology

As new technology becomes available, you can upgrade or add new equipment to meet your ever-changing needs.


Leasing can allow you to respond quickly to new opportunities with minimal documentation and red tape. Most of the time we will approve your application within one hour and you can have your equipment very quickly.

Improved Cash Forecasting

With a lease, you know the amount and number of lease payments so you can accurately forecast your print production costs.

Improved Earnings

Operating lease accounting provides a lower cost than a capital lease in the early years of a lease.

Is Leasing Right for My Business?

Eight out of ten U.S. companies lease some or all of their equipment. Most of our clients prefer to lease as the most cost-effective way to finance their office equipment. Leasing offers minimal start-up costs, leading edge technology equipment, and preservation of your working capital.

Our leasing partners are GreatAmerica Leasing Corporation, Municipal Capital and Konica Premier Finance (US Bank). They are well known for their exceptional service, competitive programs and rates, and ethical business practices.