Things To Consider With Equipment Leasing
Equipment leasing can be a great way to ensure that your team has the equipment it needs to thrive. However, it can also be a complicated process, especially if you work with the wrong leasing company. The following are a few things that you should think about before agreeing to an equipment lease.
- How Familiar Is the Lender With This Type of Equipment?
It is helpful to work with a company that knows the type of equipment you are leasing. While this is not always possible, it can be advantageous because the leasing company is your financing partner. You never want to work with a partner that doesn’t know the industry well.
In most cases, it is more than enough to work with a leasing company that has experience in your industry. However, if you can find one with specific experience with the specific equipment, that is even better.
- What Are the Payment Options?
It is always good to know what your options for making payments are. Leasing can be a good way to get low, fixed payments. However, this will not always be the result. You should know what you are signing up for and exactly how much it will cost you.
- Would a Loan Be Better?
In some cases, it is better to get a loan and buy the equipment yourself. This will mean that you own the equipment and can do with it as you like. If you expect the service life of the equipment to be significantly longer than the term of a lease, this is probably worth considering. Of course, it is sometimes better to use a lease. You should evaluate both options carefully.
- What Happens If Something Breaks?
When you are leasing, you share some responsibility for the equipment with the leasing company. You should know what happens in the event that something breaks. The leasing company may require specific procedures for getting it fixed. Chances are that you will be footing the bill. So, you should know exactly what your obligations will be.
- Is a Buyout Lease Available?
Some leases let you buy the equipment at the end. This is sometimes for a nominal amount or for a chunk of the market value. Ask the leasing company if a buyout option is available. If it is, you should consider this option carefully.
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Discover more about equipment leasing today. With the right solution, you can put your business on the path to success.