Ten Ways to Save a Bundle on Your Next Lease

Written by George A. Parker


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6. Manage Equipment Returns

Save a bundle on your lease by managingrepparttar equipment’s return. Although you may not anticipate returningrepparttar 112198 equipment torepparttar 112199 leasing company at lease end, it can be costly if you do. When equipment is returned, most lessors care about and will hold your firm accountable forrepparttar 112200 equipment’s condition. Equipment should be properly maintained and returned in good condition. Make sure that you understandrepparttar 112201 return provision ofrepparttar 112202 lease and that you have good internal controls to adhere to these requirements. Ifrepparttar 112203 lease contains an ‘all or none’ return provision, one strategy is to subdividerepparttar 112204 lease into several smaller lease schedules onrepparttar 112205 front end. Place equipment you are most likely to keep onrepparttar 112206 same schedules. Try to negotiaterepparttar 112207 right to return up to 20% ofrepparttar 112208 equipment (based on original value) atrepparttar 112209 end ofrepparttar 112210 lease, as long as you agree to renewrepparttar 112211 lease or purchaserepparttar 112212 balance ofrepparttar 112213 equipment. Track and save all equipment accessories and documentation.

7. Match Lease Term with Projected Equipment Use

The term ofrepparttar 112214 lease should matchrepparttar 112215 expected use ofrepparttar 112216 equipment as closely as possible to save money. Ifrepparttar 112217 term is too short, cash outlays forrepparttar 112218 equipment might exceedrepparttar 112219 expected equipment benefits overrepparttar 112220 term. Ifrepparttar 112221 lease term is too long, you might loserepparttar 112222 flexibility of upgrading to newer more desirable equipment. Notwithstanding your preferences,repparttar 112223 term allowed byrepparttar 112224 leasing company may depend on their perception of credit risk andrepparttar 112225 expected economic life ofrepparttar 112226 equipment. Any mismatch between your preference and lessor’s can be managed by obtaining favorable end-of-lease options.

8. Identify and Understand All Potential Fees

Leasing proposals vary inrepparttar 112227 types and amounts of fees and penalty charges. Common fees and charges include: commitment fees; non-use fees or facility fees; per schedule documentation charges; attorney fees; UCC financing statements; penalty charges for late rental payments; and early lease termination charges. These are only a few ofrepparttar 112228 possible fees and charges. You can save a bundle by carefully going through each lease proposal and lease agreement to identify and compare likely charges. If fees or charges are significant and likely, they should be incorporated into your pricing analysis. Where possible, especially where one proposal contains fees/charges excluded fromrepparttar 112229 other proposals, try to negotiate these fees/charges.

9. Offer Credit Enhancement to Reduce Lease Rates

In some cases, you can trim lease pricing substantially by offering credit enhancements to improve your firm’s credit profile. Enhancements can include: shorteningrepparttar 112230 lease term, cash or other assets as additional collateral, personal or corporate guarantees, advance rentals payments, and security deposits. Since most credit enhancements involve giving up something of value, do a cost/benefit analysis to determine whetherrepparttar 112231 net benefit is in your favor. If your firm has assets that are not working for it why not put them to work inrepparttar 112232 leasing arrangement. The value of credit enhancements can differ from lessor to lessor, so identify and discuss possible enhancements upfront. Try to assess whether your firm’s credit will improve significantly by credit enhancements and get lessors’ pricing with and withoutrepparttar 112233 credit enhancements.

10. Request Several End-of-lease Options

Ifrepparttar 112234 lease contains a nominal purchase option, there is little need for additional end-of-lease flexibility. Otherwise, flexible end-of-lease options can save you a bundle by preventing you from incurring extra expense. One ofrepparttar 112235 most cost-effective options isrepparttar 112236 ability to returnrepparttar 112237 equipment atrepparttar 112238 end ofrepparttar 112239 lease. If you no longer needrepparttar 112240 equipment, why incur additional charges? Additionally you should haverepparttar 112241 ability to purchaserepparttar 112242 equipment at a fair or reduced price andrepparttar 112243 right to continue leasingrepparttar 112244 equipment at a fair or reduced rent. As discussed, use of caps in fair market value purchase or rental options can greatly reduce potential costs at lease end.

Conclusion

Saving a bundle on your next lease is a cinch if you know where to look. By focusing on a few key areas, you can wring huge savings out of your lease. Remember to set your priorities in evaluating lease proposals and to chooserepparttar 112245 right leasing partner. Also, while front-end lease pricing is usually a high priority, evaluate each lease carefully to sniff out hidden fees and expenses. Don’t be bashful about negotiating points inrepparttar 112246 lease that haverepparttar 112247 potential to save you a bundle.

George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”). Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in equipment financing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: www.ltileasing.com.


Attract good fortune with lucky cats

Written by Jakob Jelling


Continued from page 1

If you wish to follow feng shui guidelines when placing your lucky cats, you should not only take into accountrepparttar house area where you place them, but alsorepparttar 112197 elements they contain. Therefore, if you will place your lucky cats in a metal area you should choose them made of metal, or if they will be in a fire area they should contain fire colors.

Lucky cats symbolize protection in all senses. They can see inrepparttar 112198 dark and protect you from what you might not be aware of. They would defend not only your income but also your house and all those who live in it. If you have them in your office, they will help you succeeding in your career as well as improving and protecting your income.

Jakob Jelling is the founder of http://www.fengshuicrazy.com. Please visit his website and learn all the feng shui tips you'll ever need!


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