Laundry Equipment Leasing Key Terms
Learn about leasing laundry equipment by reviewing key termsA new or start up laundry business of any type will more often opt to lease equipment rather than buy the appliances. Leasing laundry equipment allows a laundry business to obtain equipment it may not be able to procure. A lease will often offer a purchase option at the end of the lease term. Laundry businesses may also upgrade laundry equipment at no extra cost rather than maintain older equipment. Get an overview of laundry leasing terms by reviewing the following key words.
Equipment lease agreement
True Lease agreementA true lease gives the buyer the option to purchase the laundry equipment at the end of the term for its fair market value, re-rent the equipment or return the equipment.
Leasehold improvements or buildoutThis is the specific construction and associated cost required to modify the inside of a building before laundry equipment is installed.
End of lease (or term) optionsThe options agreed to between the lessor and the lessee in the laundry equipment lease agreement. Most commonly, there will be a Fair Market value, $1.00 value or a 10% purchase option.
Step payment plansStep payment plans meet the needs of laundry equipment companies that are looking for smaller payments to accommodate the newness of the leased equipment. This program starts with small payments and increases to larger payments during the term of the lease.
Coin-operated laundry start upA start up coin operated laundry is a new self service laundry business that is sometimes staffed but usually operates with few or no employees. Start up coin laundries will need financing and leasing of equipment to begin business.
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