Why the Long Term Contract?
Postage meter leases often offer great value by securing companies into a long term contract which can last up to four or five years.
Leasing companies such as Quadient, formerly known as Neopost, and Pitney Bowes offer longer contracts to keep monthly costs down.
Longer contracts mean postage meter providers are guaranteed to receive your money for the duration of the lease, which means reliable revenue for them and lower monthly rates for the customer.
But what happens if you are unhappy with the postage meter or can no longer afford the monthly payments?
How To Get Out Of A Postage Meter Lease
In order to get out of a postage meter lease, you must complete the following steps:
- Read your terms and conditions thoroughly
- Contact the company to provide justification
- Be prepared to pay your remaining balance in full
Having read your terms and conditions in full, you must call up the company that you are leasing the equipment from and explain the reasons why you would like to cancel.
In most instances, your supplier will tell you that you need to cancel in writing.
Be aware that some contracts state that upon cancellation, all future payments for the terms of the lease will automatically become due.
Some people have reported having to pay more than what they would have paid had they continued with the lease for the full term of the contract.
You should also note that some companies have automatic lease renewal and you will need to contact them in advance of your lease expiring if you do not wish to automatically renew.
If you do not wish to renew your contract, you must ensure you cancel your contract with plenty of notice. If fail to do this, you may be stuck for another four or five years in a lease that you no longer require.
We recommend that you read and understand the terms of your lease before signing. Not reading the small print could turn out to be a very expensive mistake.
However, for smaller businesses looking to start taking advantage of the savings a postage meter can offer, long term contracts can be an excellent way to keep costs low and so should always be considered carefully.