What is an equipment lease agreement? How do you know you’re getting a good deal? We investigate here…
Well, we’re exaggerating slightly…
Although a leasing agreement is far less important in world affairs as The Treaty of Versailles – when you sign a lease agreement for the first time, it may seem as important and perhaps even as daunting as that dusty document that ended up starting World War 2…
But we digress.
An equipment lease agreement is certainly an important document for your business, but if you’re aware of a few important items, your leasing experience should be nothing to worry about – and instead be a very positive experience for your business.
What Is An Equipment Lease Agreement For Businesses
What is an equipment lease agreement? A lease agreement is simply an agreement between the lessee and the lessor to lease equipment at a pre-determined term and at a pre-determined financing rate.
As with any legal document, it goes without saying that you should read it in its entirety…
So make sure that before you sign any leasing agreement, make sure you know all of the fine details of the agreement. This includes all the little details that are included at the bottom. Understanding all your obligations will keep you out of trouble – as well as make sure you are not paying more than you need to.
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The set of documents included in an equipment lease agreement binds you to the terms of the agreement and does the same for the leasing company. Although there are many parts to a leasing agreement, the lease company will offer you multiple options when it comes to the end of the lease.
Most equipment leases have a buyout at the end of the term. Many allow you to resign another leasing agreement with new equipment so you stay on the cutting edge in your business. You can purchase, send back, or even further the length of your lease in many cases.
Peace Of Mind When Signing
Equipment leasing is a great option if you still have not figured out exactly what your equipment needs are for your company. Many new businesses start out thinking they need certain kinds of equipment, only to find that they need to adjust their equipment needs based on customer demand and other market factors.
A good leasing company will be flexible and assist you in your business and not try to cheat you to get you to leasing terms that are not in line with your business objectives. Rather, they are there to help you get what you need and they will put that in their agreement.
A good leasing company will work with you as best as possible to fulfill your needs – even if those needs are fluid and somewhat uncertain at the outset.
But which leasing company to go with? There are many choices. However, you may want to consider a new way to lease equipment using LeaseQ.
Check out this video to see how easy equipment leasing is with LeaseQ:
If for some reason, you can’t see this video click here.
Agreeing To The Right Facts
Without a doubt, you are responsible for the equipment that you lease. If something does go wrong with the equipment while you are leasing it, the leasing company can help you to fix it or to outright replace it.
And if the equipment simply breaks down, make sure you know from your lease agreement how to best handle that situation. This will be outlined in your agreement – so once again…it may not be exciting to read but make sure you read the fine print. This will save you headaches down the road.
Not only will your leasing agreement have the dates of your lease and what it you are leasing for your business, but it will also include buyout clauses and what happens at the end of the lease itself. And if damage occurs, in most cases the leasing company will replace your equipment or will fix it on their dime.
Inspecting The Equipment on Delivery
Upon delivery, make sure you inspect your new leased equipment thoroughly. If the equipment was never in good shape to begin with and it breaks down, that may be something you’ll have to deal with on your own. Make sure you inspect the equipment to see that this doesn’t occur.
By law, you have three days usually to inspect the equipment that you lease. You are allowed to reject the equipment if you feel it is not in the condition that it was described in the agreement.
After all, you do not want to be paying for something that was originally in bad shape. Although most leasing companies will allow you to return the equipment if you find something wrong after the three-day window, don’t take any chances. This is why its so important for you to do a further evaluation in case the equipment got damaged in shipping or transport.
You should still inspect it as much as you can though in order to get the best out of your leasing experience.
To find out if you qualify for equipment leasing, simply click here for a quote. And if you want more information on what is an equipment lease agreement, feel free to contact us.