How to Lease Equipment
Needs of every business keep changing due to changing customer preferences and a dynamic business environment. As a result, it is not optimal for many businesses to keep spending money on capital purchases that come in the form of equipment. Moreover, businesses may want to test waters in new areas, so spending large amounts of money for equipment is not a viable business idea. In the case of startups, they are unlikely to have funding for large capital outlays. To overcome these problems, many businesses prefer to lease equipment from third-party leasing companies for a fee.
Research the Equipment You Need
The first step is to determine what equipment your business needs and for how long. Spend time and do a thorough research of the available pieces of equipment in the market, and what out of these, will your business need. This is an important step as it could determine the very future of your business, so it is a good idea to put the most knowledgeable people on this assignment. This is also a good time to evaluate whether you are better off leasing or purchasing a piece of equipment.
TIP: 1) Read through latest journals and use the Internet extensively. Interviews with industry giants can also help.
2) Browse through latest reports from research firms to get accurate future trends in your industry.
3) Spend adequate time on this step as it is vital for your business.
Checklists: Equipment Lease, Leasing vs Purchasing, Equipment Inventory List, Purchasing Used Vehicles.
Understand Lease Types
There are many types of leases such as operating lease, capital lease, master lease, skip lease, step-up lease and sale leaseback. Understand these types of leases before determining what is best for you. Each type of lease comes with its own pros and cons, so do a thorough study to determine the best lease for your business.
TIPS: 1) Look for industry trends in leasing type.
2) Understand the implications of each lease type for your business.
Get Quotes for Leasing
Once you have worked out the details, get quotes from different companies that lease the type of equipment you are looking for. The more leasing companies you choose the better for you as you are likely to get better terms and conditions.
TIP: It is a good idea to get reference from companies that sell such equipment as they can point you in the right direction. Use your judgement on how many companies you want to get quotes from.
Correspondence: Cover Letter for Cost Quote, Request for Price Quote.
Checklists: Price Quotations Comparison.
Choose Your Leasing Partner
After you receive quotes from different leasing companies, thoroughly read through the quotes and make your own calculations before you decide on the best bid. Compare the cost of leasing with the cost of buying the equipment to get an idea of how much you will save. Moreover, visit the leasing company to see the equipment first-hand if both you and the leasing company are located in the same city. This visit will give you a better idea of how the equipment looks and what is the best price for its condition.
TIPS: 1) Compare different quotes to identify the best deal.
2) Never take the calculations of the leasing company blindly. Instead, make your own calculations to get an idea of the charges of lease.
Spreadsheets: Price Quotations Comparison.
Sign the Leasing Agreement
Get in touch with the company that won the bid and sign an agreement that would allow you to lease their equipment. Make sure that this agreement contains the terms of the lease including the duration and the cost. The agreement should also contain details regarding transportation, repair, damages, and any other information that you think is pertinent to the lease. Many companies tend to levy penalties if the equipment is not returned within time, so make sure you go over that as well. Also, sign other pertinent documents as the license to use and others that are relevant for your business.
TIP: 1) Negotiate on the agreement to get the best deal.
2) Before signing the lease, make a checklist of the possible questions that you want to ask the leasing company.
3) Understand the terms and conditions before signing the agreement.
Agreements: Equipment Lease (Short), Equipment Lease (Long Form), Equipment Lease with Option to Purchase, Net Equipment Lease (Short), Net Equipment Lease (Long), Board Resolution to Lease Motor Vehicle.
One of the key aspects of leasing is maintenance as there is likely to be a question of who maintains the equipment and who bears the cost in the event of a repair or damage. There is no pre-determined rule as to the maintenance if both the lessor and lessee understand their rights and duties. From a business point of view, sign an additional document that lays out the maintenance terms.
TIP: 1) Follow industry standards and best practices when it comes to maintenance agreements.
2) Never agree to a deal that you think is unfavourable for your business.
Agreements: Equipment Maintenance, License to Use, Equipment Operating Lease, Commercial Pledge Equipment & Machinery.
Once all the relevant documents are signed, you can expect the equipment to reach you within the days specified in the agreement. As soon as you receive the equipment, check its condition to ensure that it matches the specifications that are mentioned in the agreement. In the case of any discrepancies, contact the leasing company right away.
If everything looks fine, put the equipment to use according to the terms and conditions laid down in the leasing agreement.
TIPS: 1) Check the equipment even before the shipping company executives leave so that you cannot be accused of mishandling it.
2) Adhere to the terms of the agreement while using the agreement.
3) Return unused leased equipment as soon as you contractually can.
4) Consider the option of purchasing some of the equipment if it makes sense financially.
Agreements: Equipment & Leasehold (Short), Equipment & Leasehold (Long), Subordination & Cession of Priority Leased Equipment, Repurchase Agreement, Equipment Placement, Acknowledgement of Notification of Lease Transfer.
Call, Text, or Book a Call Back!
Absolutely. We begin with an 'empty' document template that is 80% complete and add your relevant information to it. Each client engagement starts with documents that have never been used before.
If so, then you can Hire Me, then we sign the privacy documents and non-disclosure document and client engagement contract. Those documents protect us both. Then we get started on whatever your project involves.
I am a Government Licensed Private Investigator specialising in Factual Investigation. I contract to clients as an Investigator, Field Agent, Business Analyst, Risk Analyst, and WordPress Nerd.
I currently have standing service and support contracts with Corporate and Government clients (references available).
I am a life-long learner. I have two papers left to finish an Advanced Diploma in Psychology (Logotherapy / Meaning Centred Therapy), and four papers to finish a Certified Business Analysis Professional (CBAP) exam prep course.
I have completed Diplomas in Financial Services (Loss Adjusting), Occupational Health & Safety, Government Fraud Control, Government Fraud Investigation, Security & Risk Management. I have finished 9 Certificate IV qualifications including, Government Statutory Compliance, Workplace Training & Assessment.
I became a Microsoft Certified Systems Engineer (MCSE) in 2003.
Since 2002 I have worked as an Investigator / Analyst on dozens of projects in New Zealand and Australia.
I have been building websites since 2003 back when I used Microsoft Front Page to write HTML code. I think testimonials on websites are nonsense. I never read them.
If you want testimonials then Call, Text, or Book a Call Back, and I'll give you the contact details of people I have been working with for years. You can call them directly, and they will tell you about me, my capabilities, and about my limitations.
I'm an Investigator and Analyst, I perform sensitive work for clients. Privacy and discretion are paramount. Nothing I do needs to be on any form of social media.
Plus, I understand what Social Media companies do with your data, and I’m not cool with my data being harvested and sold, just so my thoughts and opinions can then be manipulated.
I build websites so I can be found online within in an online environment that I control 100%.
If you contract me to build a website for you then I am happy to develop an overall social media strategy for you.