How to Select a Commercial Leasing Vendor for Your Business
Asad Haroon asked:
There are commercial leasing vendors for just about every piece of business-related equipment, including photocopiers, computers, office furniture, office space, etc. Commercial leasing allows a company to rent equipment and facilities instead of purchasing them. When you lease equipment, you will also be able to upgrade your equipment at the end of the term of the lease, which helps ensure that you have the latest technology available.
Leasing may offer substantial financial benefits because it is less capital-intensive and offers more flexibility, allowing a company to make short-term location and equipment decisions that can be easily changed at the end of the lease. Leasing may provide different tax and financial reporting treatment when compared to ordinary business expenses.
As you can imagine, choosing the right commercial leasing vendor can be challenging. If you need help Click Here. To ensure you find the right vendor for your needs, consider the following:
•Make a List of What You Need – Assess what pieces of equipment you will need. Do you need furniture or a commercial photocopier? Find a company that can provide more than one item because they may provide a bulk discount for multiple items.
•Space Leasing – Many office space facilities will also lease items such as furniture, a copier, and other equipment. Check before leasing these separately.
•Estimate Purchase Versus Lease – Some items may be worthwhile to purchase, such as computer, but remember, you will have to pay taxes at the time of purchase AND on an annual basis for as long as you have the items.
•Check References – Check the Better Business Bureau for information and do a Google search to uncover negative feedback about a company before you commit to a contract.
•Up-Front Fees – Many companies have up-front fees for their services. Ask about any and all fees associated with each lease. Some items may have different fees than others. You may pay a higher depreciated asset fee for a computer than you would for an office chair because of the rate of depreciation.
•On-Going Fees – What are the monthly fees to lease each item? How do these fees compare with comparable items that you could lease from other companies?
•Early Termination Fees – Make sure that you understand the early termination policy. If you choose to leave your current office space, will you be able to take leased items with you? Will you have to pay an early termination fee?
•Lease-to-Own – Some companies have lease-to-own programs so companies can make purchases at a lesser rate at the end of the period of the lease. If you decide that you want to keep certain items, you may wish to have the option of purchasing them once the lease expires.
•Damage and Replacement Fees – Who covers the cost to replace or repair a piece of equipment that you accidentally damage? What is considered normal wear and tear? Make sure you understand the fees in advance.
Before entering into an expensive commercial leasing contract, check with your accountant to see how it will impact you vs. purchasing. If you want commercial leasing vendors to compete for your business, click here. For additional information, you can visit our Commercial Leasing wiki.
There are commercial leasing vendors for just about every piece of business-related equipment, including photocopiers, computers, office furniture, office space, etc. Commercial leasing allows a company to rent equipment and facilities instead of purchasing them. When you lease equipment, you will also be able to upgrade your equipment at the end of the term of the lease, which helps ensure that you have the latest technology available.
Leasing may offer substantial financial benefits because it is less capital-intensive and offers more flexibility, allowing a company to make short-term location and equipment decisions that can be easily changed at the end of the lease. Leasing may provide different tax and financial reporting treatment when compared to ordinary business expenses.
As you can imagine, choosing the right commercial leasing vendor can be challenging. If you need help Click Here. To ensure you find the right vendor for your needs, consider the following:
•Make a List of What You Need – Assess what pieces of equipment you will need. Do you need furniture or a commercial photocopier? Find a company that can provide more than one item because they may provide a bulk discount for multiple items.
•Space Leasing – Many office space facilities will also lease items such as furniture, a copier, and other equipment. Check before leasing these separately.
•Estimate Purchase Versus Lease – Some items may be worthwhile to purchase, such as computer, but remember, you will have to pay taxes at the time of purchase AND on an annual basis for as long as you have the items.
•Check References – Check the Better Business Bureau for information and do a Google search to uncover negative feedback about a company before you commit to a contract.
•Up-Front Fees – Many companies have up-front fees for their services. Ask about any and all fees associated with each lease. Some items may have different fees than others. You may pay a higher depreciated asset fee for a computer than you would for an office chair because of the rate of depreciation.
•On-Going Fees – What are the monthly fees to lease each item? How do these fees compare with comparable items that you could lease from other companies?
•Early Termination Fees – Make sure that you understand the early termination policy. If you choose to leave your current office space, will you be able to take leased items with you? Will you have to pay an early termination fee?
•Lease-to-Own – Some companies have lease-to-own programs so companies can make purchases at a lesser rate at the end of the period of the lease. If you decide that you want to keep certain items, you may wish to have the option of purchasing them once the lease expires.
•Damage and Replacement Fees – Who covers the cost to replace or repair a piece of equipment that you accidentally damage? What is considered normal wear and tear? Make sure you understand the fees in advance.
Before entering into an expensive commercial leasing contract, check with your accountant to see how it will impact you vs. purchasing. If you want commercial leasing vendors to compete for your business, click here. For additional information, you can visit our Commercial Leasing wiki.
August 10, 2009 at 7:34 PM Comments (0)
