equipment leasing

Here are some important tips to ensure leasing equipment is a profitable decision:

• Get quotes directly: It is important to note that very often equipment leasing companies are referred through lease financiers. It is advisable to get a quote from the company selling the lease directly. Dealing with leasing companies directly help save on broker fees and other costs associated with completing the lease formalities. QuotationJunction can help get equipment lease quotes directly from the right leasing company.

• Make apples-to-apples comparison: Compare quotes closely from the various providers so that you get a profitable deal. While you may get several quotes, note the exact terms of the deal, the type of lease, the repayment options and any other service conditions. Very often, the devil is in the details. Before deciding that one deal is better than the other, make sure you are making an apples-to-apples comparison.

• Evaluate qualitative attributes and seek external inputs: Referrals from business associates or friends are good sources to locate a reliable and reasonable equipment leasing firm. Known sources or referrals also help gauge qualitative attributes such as customer service much better. Choose a leasing firm that qualifies on the grounds of good experience, reputation, knowledge, ability to deliver, service and relationship building approach.

• Be clear about implications of a lease contract: Choose the right lease program taking into account the lease pricing, lease flexibility, balance sheet considerations, equipment obsolescence, the anticipated period of equipment usage, and your firm’s credit status.

• Understand the lease and fees structure: Evaluate and understand the fees associated with equipment leasing very carefully before entering into a contract. Commitment fees, non-use fees or facility fees, per schedule documentation charges, attorney fees, UCC financing statements, penalty charges for late rental payments and early lease termination charges are some fees associated with lease rentals--- getting a clear idea of what kind of payments you will be liable to make is very important.

• Negotiate reduction in interim rent: This type of rent is payable from the day of equipment acceptance to the start date of the lease.

• Avoid unintended renewals and lease charges: It is advisable to keep the end of lease notice and renewal periods short to avoid automatic renewal and unintended lease charges. Such periods usually range from one to six months.