Is your business cash flow tight? Do you need some breathing room?
Consider restructuring your equipment leases. Here are 10 tips to renegotiate equipment leases and loans.
1. Call the leasing company if you are behind in making payments. Keep communication lines open.
2. Avoid late payment penalties. They can be as high as 10% of the lease payment.
3. Be proactive not reactive in the restructure process.
4. Negotiate late payment penalties if assessed.
5. Stretch lease payments out. Consider the equipment useful life as the proposed new lease term.
6. Deal with a manager at the leasing company. The customer service person is instructed to say, “We do not restructure leases.”
7. Know your contract options. This means read your current lease contract document cover to cover.
8. Refinancing and restructures usually come with a fee.
9. Be prepared for fees between a few hundred dollars and a percent of the total contract amount.
10. Remember, everything is negotiable. This means fees, lease terms and conditions.
For more ways to save money on leases, request our two free reports, “10 Tips for a Better Lease” and “Top 10 Lease Gotchas” at http://leasespeak.com.
Do you have particular cash flow or lease challenges in your business? Respond to this post and share your experiences.