A machine lease calculator is used by many business owners to help them calculate how much their lease would cost them. This utility can however create problems for you when you are comparing lease quotes from different leasing companies.
There are many different companies out there that can lease machines to you but not all of them are genuine and willing to consider what’s best for your business. Machine leasing is one of the few methods of acquiring equipment that makes financial sense. Lessees are always urged to do sufficient research into the leasing market and ensure that they thoroughly review their leasing agreement before signing anything. One of the risks that come with leasing is using a machine lease calculator to estimate how much it would cost you to lease your machines.
Machine Lease Calculator
When planning to lease essential equipment for your business, a machine lease calculator is one of the red flags that you should look out for. This is a utility that has the potential to disrupt your ability to finance a lease agreement.
Some leasing companies are known to use machine lease calculators to lure naïve lessees into entering unfavorable lease agreements. They are able to do this by generating false numbers and inaccurate estimates.
Most of the time you will find that these so called calculators are just Microsoft Excel Spreadsheets which are generally not capable of generating real estimates for you to make sound financial decisions with.
If you rely solely on these calculators, then chances are very high that you will not be able to finance your lease as you had hoped. You might incur unnecessary expenses that might warrant you to take out a loan in order to finance your lease. It really beats the logic of choosing leasing in order to save on costs.
How To Measure The Performance Of Your Equipment Lease
Instead of relying on a machine lease calculator to determine if your lease is viable, you should examine your lease agreement based on the general risks that come with leasing equipment.
Consider approaching leasing with the bigger picture in mind, in place of short-term financial benefits. Look beyond the lease rates and start looking at areas where your lessor might be charging you more than they should. For instance, think of the amount of interim rent you are required to pay. Most leasing companies like charging interim rent before the lease period officially begins and they do not include it as part of the payment plan.
Some other leasing companies have stringent conditions for returning equipment, which more often than not, leads to default or lease extensions. These are just some of the very many hidden charges that a machine lease calculator cannot factor in.
For many business owners, measuring the performance of a lease involves engaging the services of a professional who specializes in the leasing niche. This is often the best course of action to take because they have knowledge in cost saving and know the in and out of the leasing industry. They have their own accurate measuring system that almost always produce accurate results.
Final Thought
For many business owners, the benefits of leasing machinery significantly outweigh the benefits of taking out a loan or making a cash purchase. This is because they know that they will be able to acquire the most technologically advanced equipment at terms and rates that are feasible.
A machine lease calculator is only there to provide estimates most of which are just numbers generated to dupe prospects into thinking that they have the lowest rates.
Capital expenditure requires careful thought and planning especially in these hard and unpredictable economic times. Lease calculators are meant to help you make an analysis as to which finance option is the best to procure machinery. Some leasing companies can make this really difficult especially if you blindly sign a lease agreement based on the estimates generated by their faulty lease rate calculators.
LeaseQ is one of the few places where you can get a free and instant quote that is not binding. It is basically a comparison platform where you can compare lease quotes from hundreds of finance companies. More importantly, there are no high-pressure sales tactics that many financial institutions use to coax prospects into entering bad deals.
For more information on machine lease calculator, simply CLICK HERE.