When trying to get you to lease copy or printing equipment, a broker or manufacturer may tell you that leasing frees up badly needed cash for marketing or development efforts. With careful planning that is true, but for an unprepared business owner a lease can be a dreaded monthly payment that is the difference between thriving and closing up shop. Always remember that leases should free up cash flow, not restrict it.

By slowing down your decision making process, you can secure a lease that makes sense for your business. Be sure to take a moment to examine all of the costs before signing. With all lease payment structures, you need to examine the maximum monthly payment you would be required to make and compare it to your expected revenue.

To start, always look at equipment leasing as two separate transactions. For example, you are negotiating for the Xerox DocuTech 6100 that you need and you are deciding how much money you're willing to pay in interest. So you should fight for both—the best gear and the lowest price. All it takes is a little advance work and knowing the right questions to ask.

Always Take an Interest in the Rate

In order to be successful in earning the best interest rate on your copier lease, you need to think big. No matter the size of your company, you need to learn to throw your weight around like a bona fide blue chip.

Most importantly that means not taking the first offer from manufacturers. Get the interest rate in writing as to the percentage and the real cost of leasing a copier directly from the manufacturer. You might be surprised to learn the rates on recently introduced equipment like the Xerox 4590 or Nexpress 9110.

Next, solicit additional offers from equipment leasing companies. Look at your company like a municipality. Send out a Request for Proposals and try to secure at least two bids from financial services corporations. Let everybody know that you're looking around. The numbers you're quoted might change in a hurry.

How's the Service at That Place?

Emergency repairs on a copy machine can be a double hit to your bottom line. With your equipment out of service you can lose valuable time and revenue from jobs that can't be finished. In addition, the cost of hiring a service technician or finding a rush replacement can add up in a hurry. Always know the value of your leased equipment.

Keeping your copier on a service package is standard in most lease agreements. However, you should always know the details of that service, i.e. what is the response time of technicians and when are they available to service your machines. That way you will be prepared to handle any equipment malfunctions without sacrificing profits.