One of the benefits of equipment leasing is the wide variety of structure and term options available. While this creates an opportunity to customize a solution around the specific needs of your business, it can also be a major source of confusion and frustration – particularly at the end of the lease.
Depending on how the lease is structured, the end result could be outright ownership, while others will automatically renew or even require that the equipment be returned. Some leases will actually specify that the customer provides notification, in writing, of their desire to own or return the equipment to avoid an automatic renewal. Even when ownership is expected, many lenders will require an additional payment be made before ownership is transferred. This could be as little as $1 or as much as 75% of cost, despite having already made the scheduled payments.
Unfortunately, most finance companies operate only as a broker, creating little incentive to better clarify these points up-front. Instead of providing a solution in the customer’s best interest, the broker is focused on maximizing commission; knowing the relationship ends after funding occurs.
Considering financing for your business? Contact a Rigquipment Finance representative to discuss your options at email@example.com or 571-933-8339.