How to Avoid Mistakes when Signing Your Equipment Lease Contract

Many businesses find that leasing their equipment saves them money. However, a lease agreement can also cost your business thousands of dollars. Unfortunately, business equipment lease agreements are tricky and contain a lot of legal terms. That is why you must consult a lawyer who specializes in contract lease agreements before signing any lease agreement. 

Companies new to equipment lease agreements make one major mistake. They think a short leasing contract is better than a longer contract. However, short contracts don’t address all the problems that your company may experience during the lease agreement. Furthermore, some shorter lease agreements might not include clauses for your employee’s privacy or problems with the software.

When entering into a lease agreement it is important that both parties have their expectations clearly outlined in the agreement. The leasing contract will help your company avoid costly mistakes. It is especially necessary for your business to pay close attention to any lease agreement that lacks completeness. In the end, this agreement might have legal risk and ramifications for your company.

What to look for in your lease agreement.

Performance 

All lease agreements need the details of the equipment being leased. The equipment performance details are one area of a lease agreement that can fail. If the details aren’t outlined in the agreement, don’t sign the agreement, until you and the leasing company have come to an understanding. 

Responsibilities

Having a structured agreement will help your company understand who is responsible for handling your account. The agreement needs to stipulate who will handle the problems and give you their contact details. If the allocation and structure of the company’s point of contact is not clearly stated, don’t sign the agreement.

Hardware and Software

Most computer equipment leases require your company to have a separate software lease. Before signing any equipment lease contract check with both leasing companies to make sure the software will be compatible with the hardware you are leasing. Make sure the hardware and software leases will start and end on the same day. Furthermore, find out who will support your problems and if the two leasing companies will work together to solve your issues.

Lawyer Consultation

Some companies make the mistake of not involving their lawyer when they are drafting a new lease agreement. Your lawyer should be present and involved in all stages of your lease agreement. Having your lawyer present during the negotiation phase will avoid problems at the end and smooth the transaction. 

Communication 

Communication is an important factor in any lease agreement. During your negotiating phase make sure all your questions are answered to your satisfaction. If the leasing company isn’t available for your calls or fails to return your calls, don’t sign their contract. This is a clear sign that the company won’t be there when you need them to fix a problem. 

In Conclusion

Any business can benefit from leasing equipment. However, it is important that you understand the importance of negotiating your lease agreement. Never sign a lease agreement before you have your lawyer read and approve the contract. Therefore, it is important to avoid the major pitfalls and mistakes made in leasing agreements before you sign any contract.

 

Image: flickr.com

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Julie Sinclair

About Julie Sinclair

Julie is a retired school teacher who loves writing, gardening, Internet research, crafts, and being with her family. After retirement Julie has kept up her skills in computing by taking classes at the College near by.