Should You Really Lease A Printer For Your Small Business?

One of the most vital equipment in your office is the printer. Small businesses must manage their office equipment expenses properly. What if I told you that you could get equipment like printers or copiers without paying their entire cost upfront. In other words you can lease a printer for your small business in Australia. Let's now dig in to see how a printer or copier on lease is a much better option than buying one.
Leasing a Printer


Budgeting is everything when you’re managing an office. You have to manage payroll, office supplies, tools, and even rent into consideration. You might be asking yourself how can you maximise your funds and provide your employees with the best tools they require to thrive? If you lease a printer for your small business, you can invest the remaining capital in these tools and solutions to grow your business.

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One of the most vital equipment in your office is the printer. Small businesses must manage their office equipment expenses properly including print services. What if I told you that you could get a wide range of equipment like printers or copiers without paying their entire cost upfront. In other words you can lease a printer for your small business in Australia. Let’s now dig in to see how a printer or copier on lease is a much better option than buying one.

Types of Printer/Copier Leases

The Computer and Printer Leasing Industry is a $1.2 Billion industry in Australia according to this Ibis world report.There are two significant categories of business equipment leases. They are known as operating and capital lease. Check out the below infographic which brings this to life:

  1. Operating leases– Most companies prefer operating leases, furthermore called fair market value leases, because they propose lower monthly fees than capital leases. When a business obtains an operating lease for a copier, also known as a commercial copy machine lease, it’s virtually renting the tool, so the asset never gets put into the lessee’s balance sheet. This is the best copier lease for small businesses because the lessee can buy the copier when the lease ends. Even the financial accounting for these leases is quite simple since the payments made for lease are tax-deductible. 

Although the lessor will calculate the buyout cost based on agreement terms, depreciation, wear and tear, new technology, and market demand, these leases commonly render the most sense for companies that don’t foresee the nuisance of owning a copier, choosing to rent out current printer models.

  1. Capital leases– Sometimes named $1 buyout leases, capital leases are the less popular business option. When a company receives a capital lease for an appliance, it’s better like a loan on the cash than a rental on the device. The printer moves to the lessee’s balance sheet. 

The monthly rate for a capital lease is higher because 100 percent of the equipment’s cost is financed. Nonetheless, a capital lease does extend a benefit for lessees who intend to buy because of the contract’s expense at signing. Commonly, capital leases bring the most understanding for businesses that wish to purchase and acquire a copier without giving rise to the entire investment upfront.

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Advantages of Leasing Business Printers & Copiers

Fewer Upfront Costs 

Printer Leasing Services or Printer Rental not only enables small businesses to acquire printers with lower upfront costs, but it also allows preservation of credit. Several small companies have been restricted from dealing with credit. Through leasing tools, they can avoid upfront costs without taking too much credit.

When you lease a printer or copier for your small business for a period of time, you don’t have to spend thousands of dollars upfront to get the equipment you need. The majority of leases don’t impose a down payment from small businesses, and if they do, it’s trivial compared to spending the entire price at once. The cashflow you can free up can be allocated into different business areas that enhance customer service and employee motivation for example.

With the money saved, you could upgrade your phone system, improve your internet, invest in an after-hours answering service, improve your website design, or even get your employees ergonomic chairs.

Eliminate Financial Responsibility

When purchasing a copier machine, the sizable significant investment is just the beginning of a potential financial burden. As soon as the warranty expires, all crucial repairs and maintenance are your financial obligation. This can quickly become costly if something significant happens to the machine.

When you rent out a multifunction printer, you do not acquire the appliance. So, any ordinary or systematic maintenance isn’t your obligation.

Unless someone damages it on purpose, that, of course, is a different story— and more than likely results in your business footing the bill for damages. Nevertheless, regular servicing also inclines to be a portion of the price negotiation when renting out the appliance.

Maintenance and Service Done For You

Most probably, neither you nor your employees are specialists in printer repair, which you aren’t presumed to be anyways! There are many more productive tasks your staff can and should be doing with their time.

When you rent an office printer, there’s no requirement to worry about repairs and expenditure. If your machine malfunctions, all you have to do is contact the leasing machine, and an experienced technician will take care of the rest – no need to worry about these printing costs.

As a business owner, I am sure you have more than enough on your plate with the company’s day-to-day operations without needing to learn how to service and repair multifunction printers! Let the experts handle it we say.

If we talk about maintenance, most small businesses arrange a routine maintenance schedule with your office to ensure your printers work correctly. If you’re anxious about the interruption of work for repair and maintenance, you shouldn’t be.

The office copier leasing company will work with you to set up times that work best for your business and interrupt productivity the least.

Tax Benefits

Every business looks for ways to lower their tax bill, and leasing will help. Buying office equipment outright could cause you to pay an AMT (Alternative Minimum Tax), whereas leasing your gear won’t. Furthermore, when you rent your copier (or any additional equipment), you can write the expenses off as business expenses at the end of the financial year without bothering about extrapolating how to deduce depreciation.

As a small business owner, you understand your company can utilize every tax break you can obtain. Renting out an office printer offers extraordinary tax benefits to your business that is more favorable than purchasing the appliance outright.

When you rent an appliance, you can figure the expenditure as a pre-tax business cost. This means you can deduct the entire cost, every time! How nice is that?

Check out this infographic we created that we hope you might find helpful – read on below for more information also!

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buying a printer infographic

Disadvantages of leasing Printers & Copiers

  • The cost of possession would be more expensive in the long run if you were to rent out rather than buying the printer outright. 
  • Printer rental periods are locked in. Small businesses need at least three years, which can be troubling if you don’t plan to need the unit for that long.
  • The equipment belongs to the leasing company. This means you cannot sell the equipment to recoup any cost, and you run the risk of being stuck with the equipment after your lease runs out. 
  • A leasing agreement might not be in your best interest. Ensure you choose a reputable company with flexible contracts and good service; otherwise, the option to lease a printer for small business will only cause you frustration.

Tax Considerations of Leasing a Copier/ Printer

There are tax implications for buying and leasing or renting out equipment for your small business. Printers or copiers classify as depreciating assets. Both leased and acquired printers or copiers plummet under deduction when small businesses file their taxes, so it’s best to discuss with your small business’s accountant before formulating an ultimate decision on whether to purchase or lease.


1. What is the most economical printer for a small business?

Brother HL-L5100DNBest Economical Printer

Brother HL-L5100DN best economical printer for small business

This Brother copier provides rapid laser printing with choices for two-sided printing jobs. Still, one of its most significant advantages is the price: It’s hard to find a cheaper printer that sports this much power, and Brother is a very reliable brand to choose for businesses. It’s also swift: Printing goes up to 42ppm with black-and-white printing.

While the paper tray is smaller than HP’s model with a 250-sheet capacity, there’s also a 50-sheet multi-purpose tray for printing envelopes and other smaller side projects with special requirements (you can also upgrade to a larger tray if you need to). Connectivity options include Wi-Fi and Ethernet and compatibility with Wi-Fi direct services like AirPrint, Google Cloud Print, etc.

Why is it the most economical printer for small business – This printer provides excellent printing quality at the lowest running cost compared to its competitors. It is a top option if you want to lease a printer for small business indeed.

2. How much does it cost to lease a copy machine? 

The majority of small businesses spend between $50 to $2000 a month to rent or lease out a multifunction printer, photocopier, or copier.

3. What is the best color copier for a small business? 

Lexmark MC3224adwe– Best Color Copier

Lexmark MC3224adwe - best color copier for small business

This Lexmark copier, a color laser printer, is a terrific option for small businesses that handle graphic designing and images. This copier can scan and print color images in 600 dpi (dots per inch) to conserve resolution and color quality. It can also print on numerous paper types, including glossy, straight, cardstock, labels, and postcard.

Why is it the best color printer for small business – It offers terrific printing color quality with the highest print volume ratings. Although it’s relatively expensive, if you deal with graphics and design, there is no better option available in the market than this one.

4. What is the best all in one printer for small business?

HP LaserJet Pro M281fdw– Best All In One Printer 

HP LaserJet-Pro-M281fdw best all in one printer for small business

This printer is the best all in one option for your office in our opinion. It delivers auto double-sided printing. The printer can copy, scan, and fax—one of the best all in one office color laser printer for a small business. It has a 50-sheet capability automatic tray, a 250-sheet facility tray, and a 100-sheet output. The 2.7-inch colored touch screen enables you to rapidly and smoothly adjust settings, select a function, or print immediately from cloud storage like iCloud or even Google Drive.

Why is it the best choice for all in one printer for small business – This printer can replace your copy, scan, and fax machine. Since it offers the latest cloud connectivity technology, you can even operate it through a mobile phone app, making it the best choice for your printing needs.

5. What is the best small business multifunction printer?

HP LaserJet Pro M428fdwBest Multifunction Copier 

HP LaserJet Pro M428fdw best multi function copier

Today’s small businesses have various document organization requirements like printing, scanning, copying, and regular faxing. This is one of the most perfect colour multifunction printers for any small business. This copier accentuates auto double-sided printing and single-pass duplex scanning, so you can grasp enormous workloads and documents quickly while lessening paper use with the 50-sheet feeder, 350-sheet tray, and 150-sheet output tray. You can utilize legal and letter-sized sheets as well as envelopes and thicker paper like cardstock etc.

Why is it the best multi-functional printer for small business – This printer comes with various configurations and the best touch interface than any of its competitors. It comes with the features and speed you want in a printer for your office but keep in mind that this printer won’t be the best choice for high volume printing.

6. What are the two types of leasing?

Leasing a printer for small business is a great option if you want to save money and don’t need the latest technology. There are two types of leasing available – Fair Market Value Lease and Operating lease.

A Fair Market Value Lease gives you the option to buy the printer at the end of the lease term for its fair market value, which is determined by factors such as age, condition, usage, and resale value. This type of lease usually has higher monthly payments but it allows you to own the printer at the end of your contract.

An Operating Lease works similarly to renting a property; you pay a low monthly fee with no option to purchase the printer at the end of the lease term. This type of lease is perfect for businesses that don’t need to own the printer device and want a more flexible arrangement.

7. What are three disadvantages of leasing?

Leasing office printers can seem like a great option, but there are three main disadvantages to keep in mind:

1. Cost – Leasing equipment often comes with hidden costs and fees that can add up over time. It may be more expensive than buying the equipment outright or even getting a loan for it. So you do need to think about cash flow.

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2. Limitations – Most lease agreements come with restrictions on usage and limits to upgrades or modifications that may be needed as technology advances.

3. Inflexibility – Once you sign a leasing agreement, you’re stuck with it until the end of the term. There’s no room for changing your mind if you find better options down the line.

8. Is a leased copier an asset?

Is a leased copier an asset? The answer to this question depends on the type of lease you have. Typically, leases are categorized as either capital or operating leases. With a capital lease, the leased item is considered an asset since it’s recorded on your balance sheet for accounting purposes. However, if you have an operating lease, then the leased item isn’t recorded as an asset and it’s treated as an expense instead. Depending on your specific situation, you may find that leasing is a more cost-effective option than buying outright and it can offer additional benefits like flexibility and tax savings. Ultimately though, whether or not a leased copier is considered an asset is up to you.


Renting or leasing printers for business is a financially practical decision for any small business, whether strapped for cash or fetching it hand over fist.

The decision to lease a printer for small business reduces cost, can generate a larger tax deduction, enables you to stay up-to-date with the latest technology, eradicates the financial burden of repairs and maintenance, and saves your time on wear and tear. 

Think that just because your small business has the money lying around of course doesnt mean you should spend it. Being cost conscious where necessary is the fundamental step to the long-term prosperity of your small business.

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