Save your business budget through an equipment lease

A survey by The Equipment Leasing Association reveals that many companies in the US lease equipment, from the smallest office device like the laptop to the largest machines and vehicles. It has been reported that more than $200 billion worth of equipment is leased each year.

If you’re a small business owner, here are some tips on how you can save more on your equipment rental:

1. Choose the right leasing company. Dealing with the wrong leasing provider can cause unnecessary problems. For example, you may encounter delays with the approval of your lease application or the delivery of your leased equipment. Some leasing companies may charge hidden fees or not provide the best customer service.

To avoid such complications, it is essential that you seek out potential commercial equipment leasing companies with a good reputation, stable financial condition, and an impressive track record of service.

2. Choose the right lease. Commercial equipment leases come in many different forms and packages. You should do a careful evaluation to make sure your lease matches the needs of your business.

Before signing up for commercial equipment leasing, review your agreement and verify the specific terms of your lessor, particularly regarding pricing, payment terms and obsolescence conditions, lease-end options, customer service, termination , etc.

3. Choose a short-term lease. A shorter lease term will give you the opportunity to plan your next move and avoid being left with a poor lease. When you receive your end-of-lease notice, you can choose whether to return the leased equipment or renew your lease. The lease termination period can range from one to six months, so make sure you know the time frame. Otherwise, you could be left with an automatic renewal of the lease.

4. Reduce your provisional rent. Provisional rent is a daily fee that you incur from the time you receive the equipment until the official start of the lease. One way to cut costs is to arrange for equipment delivery at the end of the month, since most leases officially start on the first of the month. You can also ask your landlord to limit the Provisional Rent for a defined number of days (10 to 15 days) regardless of the delivery date.

5. Check all rates. Make sure you clearly understand all fees associated with your lease. Examples of lease charges are commitment fees; non-use fees or facility fees, late rental penalties, early termination penalties, etc. Take time to compare proposals from different landlords. If there are certain fees that are found in one proposal but excluded in others, negotiate with the landlord whether these fees can be reduced or eliminated altogether.

6. Provision of return or purchase. Make sure you will have the option to return or purchase the leased equipment at the end of the lease term. If you choose to return, will you incur additional charges? If you choose to buy the equipment, will they give you a reasonable price?

7. Ask for a discount. You can save big on leasing costs by applying for a discount. This is especially true if you have an excellent credit rating to back it up. Don’t be afraid to negotiate with your chosen landlord. If you have been a customer for a long time, surely you deserve the best offer.