Lease mechanics
Operating Lease
What is Operating Lease?
An operating lease lets a business use equipment such as a printer for a fixed term and return it at the end, without taking ownership.
An operating lease lets a business use an asset such as a printer or copier for a fixed term and hand it back at the end, without ever owning it, so in structure it works like a rental rather than a purchase.
Monthly payments are generally treated as an operating expense rather than a capital purchase, which keeps the cost predictable and the cash outlay low.
Most managed print arrangements are structured as operating leases, with the device, scheduled maintenance, and genuine consumables bundled into one monthly figure for the contract term.
Confirm the accounting treatment for your business with your accountant.
In short
- You use the equipment for a fixed term, then return it. No ownership.
- Payments are generally an operating expense, not a capital outlay.
- The structure used for most bundled managed print leases.
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Frequently asked questions
Is a printer lease an operating lease?
Most bundled printer and copier leases, where the device, service, and toner sit on one monthly payment, are structured as operating leases.
The business uses the equipment for the term and returns it at the end rather than buying it.
Confirm the structure of any specific agreement with your accountant.
Cyrus Dickie
Founder, Global Document Solutions
You deal with the founder directly, from first quote to ongoing support, since 2010.
Authored by Cyrus Dickie, Founder at Global Document Solutions. In the industry since 2010.
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Related terms
- Finance LeaseA finance lease is an agreement under which a business effectively finances the purchase of equipment and carries most of the risks of ownership.
- Lease TermA lease term is the fixed contract period, stated in months, during which you pay to use the equipment.
- Residual ValueResidual value is the estimated worth of leased equipment at the end of the term, and it determines who carries the end of lease risk.
- OpEx vs CapExOpEx is the day to day cost of running a business. CapEx is one-off spending on owned assets. A printer lease is generally OpEx.
- Cost Per Page (CPP)Cost per page (CPP) is an industry billing model where each page a leased printer produces carries a separate charge, common on managed print contracts.
Enquired on Monday and had a printer installed by Friday. Fast, easy, and exactly what we needed.
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$160/month
ex GST
Lease term
36 to 60 months
- Maintenance and genuine toner included
- You only buy paper
- Same business day response, Mon to Fri
- No obligation, and no automatic renewal without your written approval