Why Buy Equipment When You Can Lease It When Leasing Makes Sense

The equipment lease agreement is useful when a company uses all forms of equipment

, including office equipment, salon equipment and heavy construction equipment. It should contain options for financing as well as purchase terms. Many companies find it useful to lease equipment instead of purchasing outright as it is a means to help the business stay abreast with the latest in technology and manage cash flow. It also means reduced payments every month as compared with taking out a loan and also enables the company to avail of fixed financing rate. However, leasing can also mean having to pay more over the long term since you are committed to keeping the equipment for a given period of time.

Making the decision to lease equipment is usually a special decision and, therefore, before entering into an equipment lease agreement you would need to study all its aspects carefully. You need to have your equipment lease agreement contain the exact description of the equipment as well as the duration it is to be leased. Also state whether just one contract will suffice that will include bundled service supplies, training, and equipment maintenance? The contract should also take into account the future needs of the company and its requirement to obtain enough equipment.

The equipment lease agreement should state clearly who the leasing company is and also whether a separate company will be providing finances for the lease. It should specify the initial term pertaining to the lease and the rent amount. If there is a claim against the supplier, then the equipment lease agreement should state whether the lessee has the right to take recourse to direct action against the supplier as far as warranties, price adjustments, refunds, and other claims is concerned. It should also state whether the lessee can keep any part of the settlement.

As far as the right to transfer the interest in the leased equipment is concerned, the agreement should state whether the lease puts any limits on these rights. It should also state if there is need for special representations that are required to comply with regulations and whether the lessee agrees to assume property taxes, etc. It should also be stated whether the lessee is permitted to sue as well as take other action in the name of the lessor in a way that will help him or her to assert claims on third parties.

The equipment lease agreement can be as detailed as is desired by the parties to the agreement, and everything and anything that needs to be sorted out in the beginning of the contract can find place in the agreement.

The equipment lease agreement form is readily available in the market and finding one should not pose any problem as there are many vendors who specialize in such documents and for a few dollars one may obtain completely researched and well formed contract. There is no need for researching and creating one from scratch as buying these documents provides an avenue for obtaining comprehensively created solutions that have had experts draft them and they are suited for all manner of use. Spending a few dollars, one could reap great benefits as there is plenty to be saved in terms of time, money and cost as well as being tailored to suit individual requirements.

by: Wade Anderson

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