Look at any business today: almost every business out there requires papers and flyers to be printed in one way or another. Whether it’s something as simple as printing out a basic email or assignment for a coworker or as intricate as designing a high quality, colorful promotional pamphlet, a printer is going to be used.
Companies that require the high quality promotional work or want to design their spaces with vibrant artwork, images and other printed media, will require the help of a professional printing company.
But a struggle that some printing companies have, whether they’re trying to open their doors for the first time or trying to upgrade to the latest printing equipment, is trying to get printer financing.
You see, not all printing manufacturers out there provide printer leasing directly. For some businesses, this might not be a problem. But a printing manufacturer or vendor (who may buy or sell printing equipment) won’t get sales if their customers can’t afford to pay cash.
And most businesses don’t have that kind of cash laying around. So their only option is to look for printer leasing elsewhere.
What options are there to lease printing equipment?
There’s a few primary ways to get printing equipment leased.
Printer Vendor Leasing Program
Arguably one of the best ways to lease any new printing equipment purchase is to get it financed from the vendor or supplier directly. In some cases, it’s possible that they provide 0% printing equipment financing (or very low and affordable 3d printer financing), which is really hard to beat.
Although given that not all vendors or dealers provide this kind of financing, you’ve probably already exhausted that option. But if the option is ever available, chances are you want to take it.
One of the next best options is go to a bank for a traditional loan. Banks will generally have pretty good financing rates compared to other alternatives, but they have a couple downsides.
For one, bank loans can be difficult to acquire. They will generally have higher credit score requirements, will need to see specific financial markers that indicate you are not “high risk,” and more. This makes it difficult for some business owners who are just starting out or haven’t been able to fully establish their credit.
Two, bank loans may take longer to apply for. If you’re a business owner and need to get new equipment right away, you may not have time to wait for your application to go through. You’ll still run the risk that your application may get denied by the end, anyway.
And three, you may have to put up even more upfront cash to acquire one. If you don’t meet all of the application requirements with flying colors, then you might be expected to put up a significant amount of collateral to compensate for the “added risk.”
Printer Equipment Leasing
Printer equipment leasing, as the name suggests, focuses exclusively on printer equipment. This allows financing agreements to be tailored specifically around printer equipment and your unique financial situation.
Working with a financier around printer equipment leasing is generally easier and quicker compared to getting a bank loan. A leasing company that knows and understand what wide format printers are and what 3d printers are can give you lower rates because the leasing company knows how to resale the printing equipment when it comes off lease.
Businesses get huge tax write offs when they lease printing equipment. When you structure your printer equipment lease with a FMV buy out you get to write off 100% of your payments off your taxable income. Printer equipment lenders have different ways of structuring these types of agreements. FMV no cap and FMV not to exceed 10% or 20%.
Factors That Impact Printer Leasing Financing Costs
When starting to consider which financing option to pursue, you need to know the following:
- How good is your credit score?
- How many years have you been in business (or) are you just starting out?
- If applicable, how are the sales at your business?
- Out of your sales, are you generating a profit?
These are four important questions you need to know before going to a printer financing company, who will look at these metrics to assess your overall financing risk. These specific details will determine whether or not you qualify for printing equipment financing, as well as will impact the long term printer leasing financing cost.
Below are just a few average estimates that you could expect for monthly payments based on $20,000 with a $1 buy out.
- New Business - Great Credit (675+) - $969/mo (2 years) or $555/mo (4 years).
- New Business - OK Credit (640-675) - $1,025/mo (2 years) or $610/mo (4 years).
- New Business - Bad Credit (590-640) - $1.3K/mo (2 years) or $755/mo (4 years).
- Existing Business - Great Credit (675+) - $900/mo (2 years) or $488/mo (4 years).
- Existing Business - OK Credit (640-675) - $925/mo (2 years) or $525/mo (4 years).
- Existing Business - Bad Credit (590-640) - $1.2K/mo (2 years) or $700/mo (4 years).
As your credit score gets lower, the monthly rates naturally continue to go up. The number of years you have been in business can also impact the cost of your monthly payment.
Here's a resourceful printer equipment lease calculator to figure out what your printer lease payments could be.
Here's a printing equipment lease calculator to figure out what your printer equipment lease interest rate is.
Final thoughts on How can I get printer leasing?
Be sure to find an equipment lessor or broker that specializes in wide format printer leasing because they have the asset management team to resale the printing equipment in case of a default so there internal cost of funds will be lower than equipment lenders that don't specialize in print equipment. 3D Printer Leasing lenders have the capacity to refurbish and resale the equipment to recover losses or gain revenues after the term of the wide format printer lease.
Printer equipment leasing has an easier and faster application approval process than traditional bank loans.
At Trust Capital, the approval of a printing equipment financing application only takes approximately 2 - 4 hours. The company offers an easy application process that can be found on their website. You won’t need to wait for a long time before your application gets approved.