Want to lease equipment but have no knowledge about the terms and conditions involved? When you’re ready to lease equipment to boost your business productivity or expand your inventory, you don’t want to spend money upfront or spend hours reading through the leasing contract.
In this blog, we have discussed some frequently asked questions on terms and conditions related to equipment leasing.
1. When do I need to make payments?
An initial payment needs to be paid on the day your leasing contractor pays the equipment provider for the equipment. The amount of the initial payment will vary depending on your agreement, but it may include a security deposit, administration fees, and/or a rental fee from the day you lend the equipment.
All lease payments are usually made on the first of each month. If you’ve selected a quarterly payment schedule, you’ll pay on the first of the month every three months. An initial payment may be necessary immediately after receiving your equipment.
2. Who can sign my contract and make payments?
Anyone who is authorized to sign on behalf of your company may sign your lease contract. That might be you, your company’s manager, or anybody else you’ve legally authorized to sign documents.
The contract’s name must be the same as the person or business who uses the equipment and pays the lease. If you have a solid cause for having another person or firm make your payments, please notify the leasing company before signing your contract.
3. Do I need equipment insurance?
Almost all equipment leasing companies in Abbotsford need their clients to submit insurance for the equipment they lease. If you do not submit any proof of insurance when leasing, a leasing consultant may still insure your equipment on your behalf to protect it from loss or damage.
In this case, the leasing company will quote you a price and include the fees in your future payments. You have the option of adding the equipment to your existing insurance, purchasing equipment insurance, or budgeting for protection costs throughout the equipment lease.
4. What if my equipment needs repairs or a warranty?
If you have any problems with your equipment or require a warranty, please contact your leasing provider or equipment supplier. Since leasing companies generally don’t cover repairs and don’t have the resources to repair or replace equipment, it’s the responsibility of the equipment supplier to assist you with repairs, replacements, and equipment warranties.
For any queries regarding equipment leasing contract, feel free to talk to our equipment leasing consultants at Sandhu & Sran Leasing & Financing.
