Specialized commercial leasing is an affordable way to have the most up-to-date equipment in your business at an affordable price. While business equipment leasing makes good financial sense in many instances, there are drawbacks to specialized lease agreements, and it is important to fully understand the lease process to prevent any surprises.
When entering a business equipment lease there are a variety of questions that you should ask. To prevent financial headaches, make sure that you understand the answers as well as have them in writing. Address any concerns before you sign the contract.
- Make sure that the person responsible for maintenance is written in the business equipment lease.
- Know what happens if you want to return an item before the end of the lease.
- Ask what the purchase price of the equipment is if you choose to purchase it at the end of the lease contract.
Use an online lease broker to find the best rates on specialized leasingBusiness equipment financing is a complicated financial matter, and can become one of your company's greatest expenses. A little legwork upfront can save a great deal of money over the life of equipment lease.
Read and understand the small business equipment financing or leasing contract before signingSpecialized leasing has its own language. Before committing to a multiple year contract, read the fine print carefully. Do not feel pressured to sign on the spot.
Determine if commercial equipment financing makes sense with a lease vs purchase calculatorIndustrial equipment leasing is not an all or nothing proposition. Some equipment may be more economical to lease, while other equipment it makes more sense to purchase.
- Ask if interim rent is charged on industrial equipment leasing. Interim rent is a fee paid for the period of time between the start of the lease and the day you take delivery of the equipment.
- There are a variety of ways to save money on commercial equipment. Leasing is one method, but purchasing equipment that had previously been leased is another. Purchasing pre-leased equipment is a good choice for shelving and other equipment that is not likely to become rapidly outdated.
- Contracts for business equipment financing are not set in stone. Consider the contract as a starting point in your negotiations. Negotiate monthly payment, length of the lease, maintenance responsibilities and end-of-contract payments.