Here are some things, features, and missteps you should avoid when shopping around and comparing the equipment lease offers you’ll receive from various manufacturers and suppliers:
A very short contract. Your lease agreement must contain all the details of your obligation to the lessor. Hence, you should see to it that the document stipulates all the terms and conditions you have agreed on.
Always remember that with short contracts, there’s a huge risk of missing out on important provisions and stipulations. No wonder most entrepreneurs today still prefer long yet complete contracts over their much shorter counterparts, particularly those which contain specific and detailed statements regarding their equipment lease.
So, we support you to search for lessors that provide several pages of contracts, which deal with important terms and conditions, such as the specifications of the machines you wish to lease; the technical assistance you can expect from them; the complete timetable of fees and charges you will pay all throughout the term of your agreement; and the special payment options you can take advantage of.
Incomplete equipment specifications. Steer clear from companies which don’t provide the technical specifications of the furniture, office fixtures, vehicles, and machines they provide. Always remember that such details will tell you much about the actual performance and efficiency of the equipment you wish to use. Moreover, they can help you assess the space you need to allocate for each item you will soon receive, especially if you intend to lease heavy machinery. And, most importantly, the specifications will help you pick the best equipment that will help support the profit-generating activities of your enterprise.
So, take the time to request for pamphlets and brochures, which contain specific information about the equipment you wish to use. And if possible, perform an ocular inspection of the equipment before making up your mind.
Relying too much on verbal testimonies and agreements. Keep in mind that equipment manufacturers and suppliers will do their best to convince business owners, like you, to buy or lease the items they sell and distribute. In some cases, they might even employ smooth-talking agents to urge you to immediately apply for whatever machines, vehicles or furniture they’re offering - even without drawing up a suitable document.
And this is where it usually gets very tricky. That’s because over-reliance on verbal agreements can actually work to your disadvantage, especially if you find out that the equipment manufacturer or supplier cannot stick to the original terms and conditions of your business deal.
Hence, we constantly remind our readers to be very careful when taking out leases. You should always see to it that you have a clear yet concise document to sign before finalizing your agreement with your chosen firm.
Not seeking legal advice. First-time business owners often lack the experience and knowledge when it comes to evaluating equipment leases. And should they make hasty decisions, they might end up being in a great disadvantage, especially if they receive inefficient equipment due to their inexperience and naiveté.
This is why we advise prospective entrepreneurs like you to elect a business accountant or lawyer, who can provide you with professional advice, and help you reach a sound decision if you should take advantage of the lease you’ve stumbled upon, or not. Just remember not to let this professional decide for you; otherwise, you might get your business into serious financial trouble.