How often do you sign a contract without reading it? Believe it or not, people do this all the time.
Mary A. Redmond
Making timely lease payments can become a challenge. And don't imagine for a second that lessors will forget about the debt; the leasing company contract is legal. In these cases, negotiation is the key.
Eighty percent of all companies lease equipment. Leasing can bring many benefits, including conserving cash flow and bringing an additional source of capital. Savvy lease negotiators know that lessors will negotiate financial terms and conditions, end-of-lease terms, late charges, prepayment definitions and more. Leasing has a language all of its own. We call it "Lease Speak." It is possible to decode the language, negotiate your way through the murky water and save money for your company.
LEASING IS one of many financing tools available to help in-plants fill their equipment needs. Leasing allows fixed rate financing and usually is accompanied with little or low up-front costs. Most surprises come at the end of the lease; however, some can slip in at lease commencement and show up with the first month’s invoice. By then the contracts are signed and it is too late to negotiate changes. Every lease contains complex, confusing documentation, obscure terminology and a language that can bewilder the most astute financial managers. Capital equipment manufacturers usually provide a standard lease quote with every RFQ response. Traditionally,