Consulting with a professional accountant on your equipment lease will save you money in exorbitant fees and allow you to structure the kind of agreement that will maximize on your returns.
Do you really need to consult a professional accountant before signing a lease for equipment you need? Many people in business who would be interested in leasing already know the benefits and probably think that there isn’t much else they should demand. They will hardly see the reason for hiring some expensive professional accountant to go through the contract.
Actually the truth is that you can get a much better deal by delving deeper into the small print of your lease contract. And naturally a numbers man or professional accountant would be the most ideal and qualified person to help you through the maze advising you accordingly on how to end up with the best deal possible.
Did You Know That Equipment Leases Can Be Negotiated?
One obvious opportunity many entrepreneurs lose out on to get better terms stems from the fact that most are unaware that these leases can actually be negotiated. Sadly these busy people will quickly read through the lease agreement focusing on the monthly payments and a few other details of interest and then quickly sign on the dotted line without a fuss. This is a big mistake.
With the help of an accountant to carefully analyze each paragraph you will always open the door for a much better deal. Remember that just like most other contracts that cross your table this particular one has been drawn up by a leasing company out to maximize on their profits and revenues.
Fees You Should Never Pay
In some equipment lease contracts you will find fees that you should never pay. A good example is what is often referred to as credit or commitment fees. These are fees to process your application and fees to keep the credit commitment available after you have gotten approval. Just the kind of outrageous charges that an accountant is bound to quickly spot.
What about the broker fees supposed to be paid upfront? Or the equipment pass title fees that some charge if you choose to purchase the equipment at the end of the lease? All this is money that you should never pay out to add to the cost of your lease.
Hidden Words With Heavy Meaning
Accountants are trained to go through contracts just like your lease equipment one, with the view of getting the best possible deal. This is why small phrases in the agreement that you will hardly notice will immediately draw their attention. For example the end of term option to purchase the equipment at a “mutually acceptable price” which sometimes replaces the phrase “fair market price”? The former means that they can charge anything they want and you will have no option but to either accept or walk away from the deal.
Have You Signed A Never-ending Lease Without Knowing It?
Some contracts will lock you into a lease where any withdrawal at whatever time will cost you dearly. If you spot this in your contract you must negotiate clear end of lease conditions that will serve the interests of both parties. Precisely what a god professional accountant can advise on or even negotiate on your behalf.
You Can Structure A Contract In Your Favor
It is possible to package several equipment leases from different companies under one equipment lessor. Usually rates are much higher when the lease involves a small amount. When you bundle them together it becomes one big contract and you will be in a position to save a lot of money in lower rates and less processing fees at the end of the day. Just the kind of strategy that an accountant would recommend.
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There are many other ideas your accountant will be able to generate on your behalf so that by the time the changes are made you will have saved yourself a lot of money and will be capable of paying off your accountant without feeling the pinch.
Competition between leasing companies is fierce and you can be sure that nobody wants to lose a customer. This should give you courage to negotiate for better terms. All this starts with getting the right advise from a professional accountant on what particular points in your contract you need to haggle on and which ones to leave alone.
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