A checklist Leasing equipment - a Dozen Tips to save you a bundle

How do you want to save your company lots of time and money on your next equipment lease? A little 'firm planning could save hundreds if not thousands, of dollars. Here are a few dozen tips used by experienced entrepreneurs to save:

1. Allow enough time. The planning process is to lease, soliciting and evaluating proposals, obtain approval lease, and complete the lease documentation. Do not rush. Avoid the hassle of poor leasing company selection, approval delays, mistakes, or documentation conditions of poorly negotiated lease.

2. Consider a lease broker. Lease brokers serve roles similar to insurance brokers - by placing lease transactions with the sources of final lease. Please note, the entry bar for becoming a lease broker is very low and not all brokers are well trained and reliable. Find one with experience and integrity.

3. Get the best deal. Get at least three or four lease bids from qualified bidders compete to offer the best rates and conditions.

4. Prepare an information packet. Give bidders lease two or three years of financial statements, interim financial statements, projections, the company's marketing literature, biographies on the principals and key managers, three or four trade / credit references, company background and description / estimate equipment to be leased. Set your company apart from including a brief history of the company, value proposition of your company, its results, and why you think your company is successful.

5. Contact your landlord. Many leases require the landlord waivers. These disclaimers acknowledge that the owner has no claim against the leased equipment. Let your landlord know in advance. This will save time and aggravation later.

6. Limiting the costs "soft" (such as software, installation costs, training, etc.) in your RFQ. Many leasing companies charge higher rates and have stricter conditions of rent to compensate for the substantial soft costs.

7. Estimated taxes and charges. There are numerous fees and charges are possible in a leasing transaction. You can save a lot of carefully go through each proposal / lease to identify, quantify and compare the rates likely.

8. Obtain copies of contracts bidders. Most query letters are silent regarding many of the requirements and conditions that are normally included in the rental agreement. In their standard contracts, to search for any onerous conditions or non-standard which would otherwise delete your consideration of the proposals.

9. Tweak it. Do not be bashful to ask the winner to improve the proposal in one or two of your high-priority areas. You can get concessions or a counteroffer.

10. Hiring a lawyer 'kick-boxer'. If you are inexperienced with leases, hire a good lawyer that has experience. Many lawyers lease experts are associate members of the major equipment leasing trade associations. Contact one of these associations, or check with your colleagues, CPA or contact a loan.

11. Getting a refund. Verify that the filing fee or commitment is fully refundable if the leasing company is not able to provide the approval of the transaction, as indicated in the proposal by a certain date.

12. Do not sign side letters. Most leases state that the lease represents the entire agreement between the parties. Letters may be unworkable or undesirable fraudulent.

Equipment leasing can offer a great value to your company. They may also lead to expensive traps. Make sure you refer to this checklist useful when approaching the next equipment lease ....