Rental Costs Franking Machine Advice

Renting a franking machine means paying a simple monthly fee directly to the supplier, usually with no formal finance agreement and no credit check. Leasing is different – it is a formal finance agreement, normally through a third-party finance company, and is typically used for higher-volume machines. Which is right for you depends on your mail volume and how long you need the machine.

Renting vs leasing a franking machine

Renting or leasing a franking machine can feel daunting, so it helps to know the difference between a rental and a lease or lease purchase.

A rental is where you simply pay a monthly fee direct to the supplier without entering into a formal finance agreement. Rentals usually do not require credit clearance and are a less formal arrangement between the supplier and the customer.

A lease agreement is completely different: here you do enter into a formal finance agreement, usually with a third-party equipment finance or leasing company, or a finance company owned by the supplier or manufacturer. The latter only applies to larger franking machine manufacturers such as Neopost (now Quadient) or Pitney Bowes. These finance companies are a separate entity to the supplier – for example Neopost Finance Ltd and Neopost Ltd, or Pitney Bowes Finance Ltd and Pitney Bowes Ltd. These in-house finance companies’ lease rates are usually higher than the more specialised separate finance companies. If you have a lease agreement and terminate it early, you would have to pay a settlement figure or roll the outstanding balance into a new agreement – which means you would be financing finance. This can often be hidden, as many customers assume the money is written off when taking out a new agreement, especially when they believe the finance company and supplier are the same entity.

Which should you choose?

There is no right or wrong choice between leasing and renting – it depends on your requirements and the size of franking machine you need. If you only want a small franking machine for a short period, renting may be best. If you want a higher-volume machine with a much higher capital value, a lease may be the only practical option.

Many customers believe that renting or leasing includes service and all extras – usually it does not. On small machines, service or machine replacement may be included, but most suppliers make much of their money on low-volume machines through extras such as ink, Royal Mail price-change software updates, recrediting charges and logos.

When taking out a lease agreement, watch for the initial admin fee, which some companies add to the first payment, and a small annual service fee that can be hidden in the terms and conditions. Some companies, such as Mailcoms, do not charge an admin fee.

For a competitive rental or lease price for your franking machine, complete our short enquiry form or call us on 01543 572 776.

Franking machine rental FAQs

What is the difference between renting and leasing a franking machine?

Renting is a simple monthly fee paid directly to the supplier, usually with no credit check or formal finance agreement. Leasing is a formal finance agreement, normally arranged through a finance company, and is generally used for higher-volume machines.

Does franking machine rental include ink and servicing?

Not always. On some small machines service or replacement is included, but extras such as ink, rate updates, recrediting and logos are often charged separately. Always check what is included before you sign.

Does Mailcoms charge an admin fee on lease agreements?

No. Some suppliers add an admin fee to your first payment, but Mailcoms does not charge one. Call us on 01543 572 776 for a quote.