Franking Machine Lease 2026: Terms, Costs and Traps
Most UK businesses lease their franking machine rather than buy it. A lease spreads the cost, usually bundles service, and means someone else deals with breakdowns. It also ties you into a contract that can be surprisingly hard to leave.
This guide covers how leases work, what they cost, and the clauses worth reading twice. Facts checked October 2026.
How a franking machine lease works
You pay a fixed amount each month or quarter to use the machine for a set term. At the end, you hand it back, renew, or upgrade. You never own it.
The lease is usually with your supplier or a finance company they work with. Postage is separate. You pay Royal Mail for postage in advance, through an account your supplier runs, and the machine downloads that credit.
What a lease usually includes
Leases vary, but a typical package covers:
- The machine itself, and often a scale
- Rate updates when Royal Mail changes prices
- Software updates
- Maintenance and repairs
- Sometimes a starter pack of ink
What is often not included:
- Ongoing ink cartridges
- Labels for parcels
- Postage, which you always pay separately
- Extra hardware like a bigger scale or a sealer
Ask for a written list of what is in and out. "All inclusive" means different things to different suppliers.
How long are leases?
Terms of three to five years are common. Shorter terms tend to cost more each month. Longer terms lower the monthly fee but lock you in, and your volumes can change a lot over five years.
If your business is growing quickly or you are unsure how much you will post next year, a shorter term or a rolling rental may be worth the higher monthly cost. Our guide to franking machine rental explains rolling options.
What does a lease cost?
Monthly lease costs depend mainly on the size of the machine. Small desk top machines are at the low end; high volume mailroom machines cost much more. Our franking machine prices guide sets out typical monthly ranges by machine size.
When comparing, always look at the total cost over the full term:
Total cost = monthly lease × months in term + ink per month × months in term + any one off fees
Here is an example with illustrative figures:
| Item | Supplier A | Supplier B |
|---|---|---|
| Monthly lease | £20 | £28 |
| Term | 60 months | 48 months |
| Ink per month | £15 | £8 |
| Installation fee | £0 | £50 |
| Total over term | £2,100 | £1,778 |
Supplier A looks cheaper at first glance but costs more over the term, because of the longer contract and pricier ink. Comparing different term lengths is tricky, so also work out the cost per year: £420 for A against about £445 for B. On a yearly basis A is slightly cheaper, but you are committed to it for an extra year. Neither figure is wrong; it depends on how sure you are about your volumes.
The clauses to read twice
Automatic renewal
This is the big one. Many leases renew automatically, often for a full year or more, unless you give written notice inside a set window before the end date. Miss that window and you can be stuck paying for a machine you no longer want.
Put the end date and notice deadline in your calendar the day you sign.
Early termination
Ending a lease early usually means paying most or all of the remaining payments. Ask exactly how the figure is calculated before you sign.
Price increases
Some contracts let the supplier raise the monthly fee each year, sometimes linked to inflation. Check for a fixed price clause.
Minimum postage spend
A few deals require you to spend a minimum amount on postage. If your volumes drop, you could pay for postage you do not use.
Return conditions
Find out who pays to collect the machine at the end and what happens if it is damaged.
Leasing vs buying
| Lease | Buy | |
|---|---|---|
| Upfront cost | Low | High |
| Monthly cost | Fixed | None for the machine |
| Service | Often included | Usually extra |
| Flexibility | Locked in for the term | Sell when you like |
| Ownership | Never | Yes |
Buying can work out cheaper over a long period for firms that post steadily and are happy to arrange their own servicing. Our guide to buying a franking machine covers this in depth.
Switching suppliers mid lease
You can switch, but it is rarely free. Some new suppliers offer to cover part of your remaining lease to win your business. If you are offered this, get the buyout figure in writing from both sides.
Before you switch:
- Ask your current supplier for a settlement figure.
- Ask how unused postage credit will be refunded.
- Use up spare ink, as cartridges are brand specific.
- Agree a date when the old machine stops and the new one starts.
Things to know about the machine
Whatever you lease must print Mailmark impressions. Royal Mail has only accepted franked mail from Mailmark machines since 1 January 2023. Any reputable supplier will only lease Mailmark machines, but it is worth confirming in writing.
Royal Mail authorises the manufacturers and says it does not recommend one company over another. In the UK you will be offered machines from Pitney Bowes, Quadient or FP. Your franking licence is provided by your supplier.
Signs your machine is the wrong size
Leases are often signed when a business looks very different. Watch for these signs:
- Too big: the machine sits idle most of the day, you pay for automatic feeding you never use, or ink cartridges dry out before they run empty.
- Too small: staff queue to use it, envelopes jam during busy runs, or someone spends an hour a day feeding it by hand.
Either way, raise it with your supplier. Some will move you to a better sized machine within the same agreement, especially if it keeps you as a customer for longer.
VAT and tax
Lease payments and ink usually carry VAT, which VAT registered businesses can normally reclaim. Standard 1st and 2nd Class postage is exempt from VAT. Lease payments are generally treated as a running cost of the business, but check with your accountant how they should be handled in your accounts.
Is leasing worth it?
Leasing is worth it if the postage you save, plus the time saved, beats the lease and ink cost. Franked prices are lower than stamps on most items: on 2026 prices a 1st Class large letter up to 100g is £2.86 franked against £3.30 with a stamp. A standard 2nd Class letter is 88p franked against 91p. If you send a lot of large letters or parcels, a lease usually pays. If you send mostly standard letters, it is closer.
Getting a fair lease
- Get at least three written quotes on the same spec.
- Compare total cost over the term, not the monthly fee.
- Negotiate ink prices as hard as the lease.
- Ask for a fixed price for the full term.
- Ask for a shorter notice window or no automatic renewal.
You can use the quote form on this page to get prices from several suppliers at once.
Facts checked October 2026 against Royal Mail's franking pages and Mailmark franking tariff of 7 April 2026. Lease figures in the example are illustrative.