A photocopier lease is usually two documents, not one: a finance agreement with a leasing company for the hardware, and a service agreement with the supplier for maintenance and toner. They can run for different lengths, and that catches people out.
Here is what to look for in each.
The finance agreement
The term. How many months you are committed for. Check whether it starts on signature, on delivery, or on installation — they can differ by weeks.
The payment and what it covers. The hardware only, in most cases. Confirm whether the figure quoted excludes VAT.
End of term. The single most important clause. Find out whether the agreement ends cleanly, converts to a rolling monthly arrangement, or renews for a further fixed period unless you give notice. If notice is required, note the deadline somewhere you will actually see it.
Early termination. What the settlement figure would be, and whether any discount applies for settling early. If there is a break clause, note its conditions.
Return condition. What counts as fair wear and tear, who pays for collection, and whether anything is chargeable if parts are missing.
Personal guarantees. Whether a director is being asked to stand behind the agreement personally. This is not unusual for newer businesses, but it should be a conscious decision.
The service agreement
The click rates. Separate figures for mono and colour. Check whether A3 counts as one page or two.
Rate increases. Whether the rates are fixed for the term or subject to annual review — and if reviewable, whether there is a cap.
Minimum volumes. Whether you are committed to paying for a minimum number of pages regardless of usage.
What is included. Toner, drums, fusers, parts, labour and call-outs should normally all be covered. Staples and paper often are not.
Response times. What the supplier commits to, in working hours, and whether that is a commitment to attend or to resolve.
Meter readings. Whether these are submitted automatically or whether you are responsible for providing them — and what happens if you forget.
The mismatch to watch for
If the finance agreement runs 60 months and the service agreement runs 36, you can find yourself still paying for hardware on a machine whose maintenance cover has lapsed, or being pushed into renewing service on terms you have no leverage over.
Ask for both to run coterminously unless there is a good reason not to.
Before you sign
Read the end-of-term clause first, not last. Get the settlement basis in writing. And make sure the volumes the quote is based on are your real volumes — a quote built on optimistic assumptions is not a quote you can hold anyone to.
If you would like a second opinion on an agreement you have been offered, send it over. We will tell you plainly what it says, whether or not you end up leasing from us.
Frequently asked questions
Are photocopier leases legally binding for the full term?
Yes. A business lease is a commercial contract and does not carry the cooling-off rights that consumer agreements do. Ending it early normally means paying a settlement figure covering the remaining payments unless the agreement contains a break clause.
What happens if I don't cancel at the end of my lease?
Many agreements continue automatically, often at the same monthly payment, until you give the required notice. This means paying full price for a machine that is already paid for. Check the notice period in your agreement and diarise it well ahead of the end date.
Should the finance and service agreements be the same length?
Usually yes. If they run for different terms you can end up with hardware payments continuing after maintenance cover has expired, or renewing service cover from a position with little negotiating room. Ask for coterminous agreements unless there is a specific reason not to.