You are selling your business, closing a location, or simply no longer need the copier. The lease has 28 months left and the early termination fee would cost over $8,000. There is a better option: transfer the lease to another business that needs the equipment.
A copier lease transfer (also called a “lease assumption” or “assignment”) lets another party take over your remaining payments and use the equipment. You walk away free of obligation, the new party gets a working copier without a new lease process, and the leasing company keeps collecting payments. When it works, everyone wins.
Step 1: Check Your Lease Agreement
Not all copier leases allow transfers. Pull out your agreement and search for terms like “assignment,” “transfer,” “assumption,” or “successor.” The relevant clause typically appears in the general terms section and states one of three things:
- Transfers permitted with leasing company approval: This is the most common provision. The leasing company reserves the right to approve the new party based on creditworthiness.
- Transfers prohibited: Some leases explicitly prohibit assignment. If this is your situation, you will need to negotiate directly with the leasing company for an exception.
- No mention of transfers: If the lease is silent on assignment, contact the leasing company and ask. The absence of a prohibition does not automatically mean approval, but it gives you a starting point for negotiation.
Step 2: Find a Transfer Partner
The hardest part of a lease transfer is finding a business willing to take over your remaining payments. Here are the most effective channels:
Your copier dealer: Ask if they know of any businesses looking for that specific machine. Dealers interact with dozens of businesses monthly and may know someone who needs exactly what you have.
Business equipment marketplaces: Websites like LeaseTrader (primarily for vehicle leases but expanding to equipment), local business Facebook groups, and LinkedIn industry groups can connect you with potential takers.
Your business network: Other businesses in your building, your industry association, or your accountant’s client network may include someone who needs a copier and would prefer to take over an existing lease rather than start a new one.
Step 3: Submit the Transfer Application
Once you have a willing party, contact the leasing company to initiate the formal transfer process. They will typically require:
- A completed transfer application form
- The new party’s business information and credit application
- Financial statements or bank references from the new party
- A transfer fee (typically $200 to $500)
The leasing company will run a credit check on the new party. Approval typically takes 5 to 15 business days. The new party must meet the leasing company’s creditworthiness standards, which are generally similar to the requirements for a new lease.
Step 4: Complete the Transfer Documentation
Once approved, the leasing company prepares a formal assumption agreement. This document transfers all rights and obligations from you to the new party effective on a specific date. Both parties sign, and the leasing company updates their records.
After the transfer is complete, you have no further obligation on the lease. The new party takes over all remaining payments, maintenance responsibilities, and end-of-lease obligations.
Costs of a Lease Transfer
Transfer fee: $200 to $500, paid by the original lessee (you) or the new party, depending on negotiation.
Legal review (optional but recommended): $300 to $800 for an attorney to review the assumption agreement and ensure you are fully released from liability.
Total cost: $200 to $1,300, compared to $4,000 to $15,000 for a typical early termination buyout.
What Most Guides Miss: The Liability Release Verification
After the transfer closes, request written confirmation from the leasing company that you have been fully released from all obligations under the lease. Do not assume the transfer automatically releases you. Some assumption agreements include a “secondary liability” clause where the original lessee remains responsible if the new party defaults. Read every line of the assumption agreement and insist on full release language. If the leasing company will not provide a complete release, factor that residual risk into your decision. A lease where you remain contingently liable is not a clean exit. For alternative ways to exit a lease, review our early termination cost guide, and for strategies when transfer is not available, see how to get out of a copier lease.
Tax and Accounting Implications
When you transfer a copier lease to a new party, there may be tax implications for both sides. The original lessee should consult their accountant about whether the transfer creates a taxable event. The new party should verify how the assumed lease payments will be treated for tax purposes, specifically whether they can deduct the payments as a business expense.
If you received any payment from the new party as an incentive to transfer the lease, that payment is generally taxable income. Document the transaction and report it accordingly. Clean documentation now prevents audit complications later.
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