There are several options for ending a lease early that may or may not come with consequences (i.e. credit rating hit, debt left behind). Weigh all of your possible solutions and think about what will be best for the future of your business before making a decision.
The standard industry solution to end a current lease is refinancing. This solution involves the balance that you owe on the current lease being added to the cost of the new lease. The balance, which is often referred to as “air,” will be spread out over the duration of the new lease term. For example, if you have $2,500 left on a current contract and the new machine is worth $5,000, the new contract will be worth $7,500 and will be carrying 33 percent “air.” Essentially you will be paying for two machines even though you are only using one machine. This option only makes sense if you are planning to get a replacement machine.
Will it cost me to break my copier lease agreement?
Depending on the kind of lease that is being transferred and the required relocation and service resources, the fees may vary. However, these costs are considerably less than the expenses that you incur if you do not get rid of the lease. The biggest issue is finding a party to take over the lease. However, there are always people in the market for second-hand photocopier. Get people's attention by offering a discount incentive. Even when you eat a percent of the lease commitment and spend another percent on the transfer fees, you still recover a significant portion of your expenses.
If possible, you can end a lease commitment earlier than scheduled by paying the entire balance at once time. When you pay off the balance, you still meet the lease agreement conditions, and you get to walk away without any strings attached. For many businesses, this is not an option because they do not have the available cash flow for it.
Where can I get a new copier?
UCI has been working with small businesses and large corporations alike in the Amarillo, Texas area for several years. We know the ins and outs of copier leases and are committed to getting you a solid lease that is a good fit for your organization. To start exploring your options with us, give us a call today at 806-372-7722.