A common trap a small business can fall into is not getting expert lease counsel before signing the lease. Leasing language is complex. It’s written by the leasing company for its benefit. Fall into this trap and you could set yourself up for big problems.
8 things you should do:
1. Be sure to read the entire lease at least three times.
2. Ask when you do not understand what the lease language means.
3. Ask for copies of all lease paperwork in advance to allow plenty of time to read everything. Leasing companies are famous for sending essential paperwork at the last minute as the truck is delivering the equipment.
4. Compare the lease financing with your bank-offered debt financing.
5. Negotiate the purchase price of the equipment first.
6. Negotiate the lease terms second.
7. Do not allow the maintenance contract to be rolled into the lease financing.
8. Hire a lease expert to review and negotiate on your behalf. This expert understands the numerous “gotchas” in every lease and can negotiate to remove them. Otherwise, it is a “buyer beware” world.
My previous blog outlined 6 big problems you could experience if you go with the leasing company’s language without seeking expert lease counsel. Read about those problems here.