|
Planning ahead by doing the following
will help to prevent leasing mistakes.
The failure to look ahead into the future is a major hazard of small
business equipment
leasing. No one can predict the future, if we could then we'd all be
multi-billionaires.
However, everyone should have a solid idea of where they see their
business a year
from now, two years, five years and so fourth. Likewise, you should also
have a
solid idea where your lease will take you and what to expect at its
term.
Several small business-leasing contracts offer buyout options. This
allows you
to purchase the equipment at the end of the lease term if you so desire.
Having
this option in your lease is an excellent idea, but the details should
be spelled
out before you sign the lease agreement. These terms should include a
set dollar
amount, and a clause for the fair market value. With municipal leasing,
this nominal
fee is usually for one dollar.
If you do not wish to purchase the equipment at the end of the lease,
you do not
have to. However, should give fair notice to the equipment leasing
company before
the term of the lease. Many lease contracts require anywhere from 60 to
90 days
notice in before you can terminate your lease. Failure to give notice
may automatically
renew your lease. If you forget to notify your leasing company then you
may legally
be locked into another five-year lease with equipment you no longer need
or want.
Planning ahead by doing the following will help to prevent these leasing
mistakes.
Know precisely when your lease ends; Know what you want do; Shop around
for new
equipment before your lease ends, if you decide to terminate your
current lease;
Most important, stay on top of these, details.
Machinery guides and
resources
Contacting us and disclaimers ::
Construction Equipment ::
Equipment Financing ::
Equipment
Lease |
