As your company grows, it will likely need additional or updated equipment to run efficiently. Many businesses opt to lease their equipment to forego the headaches that can be associated with a purchase, such as the use of operating capital and the risk of equipment obsolescence. Whether you’re looking to lease printers, ECM software, telephone systems, video surveillance, a POS system or a host of other types of equipment, below are some considerations.
1. Is ownership of the equipment at the end of the lease term important?
If it is, a “$1 out” lease may be a fit for your organization. With a $1 out lease, you own the equipment at the end of the lease term. If ownership at the end of the term isn’t necessary, or if it’s undetermined at the beginning of the lease, a fair market value lease may be a better option for your company. At the conclusion of a fair market lease term, you have the option of returning the equipment, purchasing it or extending the lease.
2. How long is the lease term?
The length of your lease is one of the variables used to determine your monthly payment. Look for lease terms that work within your monthly budget and will best suit your cash flow. Consider that a longer-term lease will generally result in a lower monthly payment. The useful life of the equipment should also be taken into account when you consider the length of the lease. You want to be careful to avoid paying for equipment longer than the benefits it provides your company.
3. Are there any fees or additional charges?
Make sure you are aware of any fees the leasing company may bill you in addition to the periodic lease amount. Examples of these fees include documentation fees and filing fees. If you are considering a fair market value lease, discuss the end-of-term purchase price amount upfront.
4. Can I add equipment to the lease?
As your business needs change, it's not uncommon for you to require additional equipment. Know if your existing lease can be modified to support any additional equipment needs down the road.
5. Will I have a dedicated account manager?
When a question, concern or need comes up, there’s a level of assurance that comes with knowing you can pick up the phone or email someone you’ve established a strong business relationship with. Having an account manager who’s dedicated to helping your business run smoothly means you’ll have a one-on-one relationship that will lead to a better understanding of your company’s needs and, ultimately, result in the best leasing solution possible.Work with a reputable and dedicated equipment provider that can answer all your questions and customize a solution that’s best for you and your long-term business goals. At Gordon Flesch, we’re here to help you do just that. Reach out to us today for a no-obligation consultation to explore your equipment leasing needs.