Equipment Leases

Hi,
Equipment leases are available in a multitude of places ranging from commercial leasing companies, private leasing companies and many equipment manufacturers. The cost of leases varies considerably from one place to the next. In determining the lease best suited for your business consider the following:
1) Determine the term of the lease before calling leasing companies.
2) Have a general idea of the amount of monthly payments the business can afford before calling leasing companies.
3) Ask if first, last and security payments are required with lease inquired about.
4) If the equipment being leased depreciates very quickly, and has a high residual value at the end of the lease, do not use it as a factor to determine whether or not that particular lease is suited for the business needs.
5) Ambitious lease salespeople often have very creative payment streams on leases to entice prospective customers to sign the lease. It is important to get full disclosure on any lease to make sure there are no hidden surprises down the road.
6) If the equipment being leased is for a highly speculative business such as a restaurant, inquiring about whether or not the lease is assumable is not a bad idea.
7) The cost of insurance is a consideration when determining the cost of leasing and needs to be factored into the decision.
8) Before signing the lease, determine who is responsible for servicing equipment.
Leasing is ideal for businesses that have to worry about cash flow. Lease rates are generally figured at a cost per thousand dollars rather than a specific interest rate.
Tomorrow I'm going to write about shopping for loans to purchase equipment.
Until then,
Alan