Tips & Tricks for Effective Equipment Leasing
Equipment leasing can be a great way to acquire heavy machinery, office equipment, or whatever else your company needs to conduct its business, but all leasing arrangements are not made equal, and there are few things to look for to make sure you get an advantageous and fair equipment lease.
Make sure your lease allows you sufficient time to inspect the equipment after it’s delivered, so that you can determine it’s exactly what you ordered in the first place, and that it’s in good working condition.
Be wary of automatic renewals
Some leases include language which allow for automatic renewals unless the lessee specifically indicates in writing that there is no intention to continue the lease. This can result in the lessee being trapped into an unwanted and extended lease.
Be cautious about complete returns
Some leases include language which calls for the full return of all equipment involved in the lease, otherwise a default situation is invoked which requires the lessee to purchase all of the equipment. As an example, if one computer out of 20 were to become damaged and non-returnable, this could force the lessee to purchase all 20, rather than return them at the end of the lease period.
The lemon situation
When arranging for equipment leasing, be sure of what your course of action is in the event that at least one of the pieces being leased turns out to be unusable before ever going into operation. Some leases will declare the lessor not responsible in such cases, and as the lessee you have to be sure that you don’t get charged for a lemon which never works as it was intended to.
Understand restrictions on equipment use
In some cases, lessors will impose various restrictions on the movement of equipment, or on how it can be used, altered, or attached to other pieces of equipment. While some of these may be quite reasonable within the framework of local laws and the specific kinds of equipment in question, others can be somewhat unreasonable and unnecessarily restrictive on the lessee.
Revap Group Capital Helps with Equipment Leasing
Before you check with any other lender about equipment leasing, contact us at Revap Group Capital. Our financial experts will be able to offer you the most favorable terms for equipment leasing, so you get the equipment you need to run or grow your business, at a rate which makes sense for your company.