Equipment Leases: Key Components

Why should you lease equipment instead of buying it outright?

The advantages of leasing equipment over buying it outright are numerous. The first advantage is that leasing usually requires lower monthly payments. You are only paying for the use of the equipment, not the full purchase price. In addition, leases are usually flexible and can be customized to meet your needs. You may be able to negotiate a shorter lease term if you only need the equipment for a specific project. Last but not least, leasing allows you to access updated equipment without having to sell your old equipment.

When it comes to equipment leases, what should you look for?

A lease agreement for equipment contains several provisions that constitute its basis. Among them are the following:

• A lease's duration is determined by several factors, including the business's requirements and the equipment's price. 
• Market value of equipment: Before signing a contract, the lessee should understand the equipment's market value so they can calculate insurance premiums needed to cover the cost of damaged or lost equipment.
• Lease contracts should include information regarding payment timelines, such as when payments are due and when they expire.
• Options for renewing a lease: The lessee has options for extending a lease after it has ended. If permitted by the terms of the agreement, a lessee may wish to buy the equipment or make reduced periodic payments.
• Cancellation provisions should be included in any equipment lease. A business may decide to end an agreement before it expires, either because the equipment is obsolete or faulty, or because it has found a better option. 
• Taxes: Depending on the type of lease signed, a lessee may be required to pay taxes on the equipment.

Getting a lease for your business and what to expect during the process

Finding the right equipment for your business needs is the first step to leasing equipment. Having found your perfect match, the next step is to find a reputable lessor who can offer you a fair and competitive lease agreement.

In order for the leasing company to assess your creditworthiness, you will need to fill out an application form and provide financial information. If everything looks good, they'll send you a lease agreement outlining the terms of the lease, including the amount of your monthly payments and the length of the lease. You can begin using the equipment as soon as the agreement has been signed by both parties!

Leasing equipment for your business can be a great way to get the equipment you need without breaking the bank. By knowing the key components of an equipment lease and what to look for in an agreement, you can ensure that you are getting the best deal. Let us help you take advantage of leasing's benefits by contacting us today.