If you are starting a new business, opening a new location, or hitting a slow stretch, the last thing you need is a $200 a month copier payment kicking in week one. Most copier leases offer some version of a payment holiday: a way to push the first one to six payments out so cash flow stabilizes. The catch is that almost no rep mentions them unless you ask.
Here is everything you need to know about copier lease payment holidays, including the four common structures and what each one really costs.
What a Payment Holiday Actually Is
A payment holiday is a defined gap between when you sign the lease and when payments start. Some leases call it “deferred start.” Some call it “90 days same as cash.” Some call it “skip start.” All of these mean roughly the same thing: payments begin after a delay, but the lease term remains 60 months (or whatever you signed for).
Important: a payment holiday is not free money. The deferred payments are usually capitalized into the lease (added to the principal) or distributed across the remaining months.
Option 1: 30 to 60 Day Deferred Start
The simplest version. Sign in May, first payment due in July or August. The leasing company eats the cost of the deferred month because they want to win the deal.
This is the most common payment holiday and is usually offered without any cost increase. If a rep does not offer it, ask for it.
Option 2: 90 Days Same as Cash
Sign in May, first payment due in August. Identical to the 30 to 60 day deferral but longer.
Some leasing companies charge a small upfront fee ($50 to $200) for this option. Others fold it into a slightly higher money factor. Run the math: a 0.0001 bump on the money factor over 60 months can add $50 to $100 to total cost. If you really need the cash flow, it is worth it. If you do not, take the standard 30 day deferral instead.
Option 3: 180 Day Skip Start
Six months of no payments. Available almost exclusively to startups in their first 18 months, professional services with a long ramp (law firms, dental practices, accounting firms), or new locations of established businesses.
Cost: usually a 0.0001 to 0.0003 bump on the money factor, plus sometimes an upfront documentation fee of $200 to $500. The total cost is in the range of $400 to $1,200 extra over 60 months.
Worth it if: you genuinely need the first six months free, and you can predict your revenue ramp. Not worth it if: you can afford the payments but just like the idea of waiting.
Option 4: Step Up Payment Structure
Instead of zero payments for the first three to six months, you pay a reduced amount ($50 a month instead of $200, for example), then step up to the full payment after a defined period.
Useful if you need ongoing cash flow help, not just a one time defer. Common in industries where revenue ramps slowly (new dental practices, law firm offshoots, franchise operations).
Cost: similar to a 90 day same as cash structure, maybe slightly more depending on the step up curve.
Who Qualifies for Payment Holidays
Standard 30 to 60 day deferrals: anyone. Just ask.
90 days same as cash: businesses with at least 12 months of operating history and decent credit. Personal guarantee usually required for businesses under three years old.
180 day skip start: businesses with credit scores above 680 (personal or business), or strong industry references. Personal guarantee almost always required.
Step up payment: usually requires a defined revenue ramp story and decent credit.
What Most Reps Will Not Tell You
Reps do not always mention payment holidays because they pay a slightly smaller commission on deferred payment leases. The leasing company holds back part of the dealer’s origination commission until the first real payment comes in.
So you have to ask. Specifically: “What payment holiday options does this leasing company offer? Can we start payments 60 days, 90 days, or 180 days out?”
Once you ask, most reps will check with their leasing partner and come back with options. Some will even use a payment holiday as a closing incentive to win the deal.
Watch Out for These Traps
Trap one: the first payment is doubled. Some “90 days same as cash” leases require a double payment on day 91. Make sure the first payment is a single normal payment.
Trap two: interest accrues during the holiday. The deferred payments are not free. They are added to the principal balance and accrue interest until repaid. Get a clear total cost number before signing.
Trap three: service contract starts immediately. Even if the lease payment is deferred, the click rate and minimum monthly volume contract usually begins on day one. So you still pay $50 to $300 a month in service even during the “payment holiday.”
Trap four: the holiday is contingent on signing a longer term. Some dealers will offer a 90 day defer only if you sign a 72 month lease instead of 60. The extra 12 months of interest will cost more than the defer saves.
What Most Guides Miss
Almost every payment holiday article focuses on the first payment delay. The bigger opportunity is at the back end.
Ask for a back end skip: the last one or two payments of the lease are deferred and applied as a credit toward your next lease with the same dealer. This locks you in for the next lease cycle but saves you $300 to $600 in real cash at lease end.
Almost nobody asks for this, but plenty of dealers will offer it to retain accounts. It is a quiet incentive that does not show up on the standard quote.
One more thing: a payment holiday is taxable as a business expense in the months you actually pay. If you defer six months, you have a smaller deduction this year and a larger one next year. Talk to your CPA before deciding whether to maximize the holiday.
For pricing benchmarks to weigh the payment holiday cost against, see the copier lease pricing guide. To weigh the holiday against an outright purchase, see copier lease vs. buy.
Ready to Compare Copier Lease Quotes?
Ready to compare copier lease quotes from verified dealers in your area? CopierFinder connects you with pre-vetted local providers so you can compare real pricing, not ballpark estimates. No obligation. No sales pressure. Just honest numbers so you can make the right call for your business.