Long-term Leasing
When renting equipment, plan the lease term to be for as long as you want to keep the equipment. Take in consideration:
- How quickly is this technology going to be obsolete?
- How many years will the equipment perform with minimal repairs?
- Is your business planning for rapid growth?
- How often have you replaced your equipment in the past?
Lease terms generally run from 36 to 60 months. If you replace your equipment every three years you should set the lease period for three years. When in doubt select the longer term. Almost all leases can be upgraded if needed. The longer the term you set, the lower your monthly rental fee.
When your needs are for less than 36 months it is best to use a short-term rental program like the Cost-Per-Copy rental.
Know all the terms of the lease such as what happens at the end of the scheduled term. The fine print is always read at the end of term. To better understand some of the pitfalls of equipment leasing please read Great American’s “Truth in Leasing” statement.
For more advice on equipment leasing please talk to Mike Upchurch. Telephone: 919-834-0100