LPRS Blog: Leasing911

Lessor selection is crucial when entering into equipment leases, because some equipment leasing companies are substantially more high-risk than others.

Topics: Equipment Leasing, equipment leasing companies

Cloud computing is having a revolutionary impact on the IT equipment market, with cloud providers offering not only software as a service (SaaS), but also platform (PaaS) and infrastructure (IaaS) cloud solutions.

Topics: technology leasing, Computer Leasing, lease extension, commercial equipment financing, cloud computing

When an enterprise is considering leasing equipment, the type of equipment being leased makes a big difference when conducting lease vs. buy analysis, selecting the right leasing structure and related accounting treatment (operating or capital), and choosing leasing vendors.

Topics: technology leasing, truck leasing, TRAC Lease

Enterprises that enter into an equipment lease agreement without a clear understanding of the risks involved almost always end up paying more than they should. Equipment leasing companies are well aware of how to increase their potential revenue by structuring an equipment lease agreement to increase lessee risk. To protect themselves, enterprises need to understand what these risky lease agreement terms are.

Topics: Equipment Leasing, Equipment Lease Agreement

CFOs and other key people involved in equipment procurement frequently get approached by commercial equipment leasing companies promising “great rates." These salespeople will freely share their “expertise” on equipment leasing, explaining how the flexibility that their equipment leasing solution offers will reduce equipment costs and offer countless other benefits.

Topics: Equipment Leasing, Bank Lessors, Independent Lessors, Vendor Lessors, Equipment Financing

There is a common perception—particularly for IT equipment—that leasing is an easier, more efficient and more cost-effective way to procure equipment than using commercial business loans or other forms of debt to purchase the equipment.

Topics: Equipment Leasing, commercial loan, commercial lending, Equipment Lease, commercial business loans

Leasing business equipment often seems to be a less-expensive procurement option than purchasing, but that determination may not be accurate if the true risks of equipment leasing aren’t factored into the lease vs. buy analysis.

Topics: Equipment Leasing, business equipment

Leasing commercial equipment is often the most cost-efficient equipment procurement method for enterprises. But commercial equipment lease agreements are complex documents—full of terms which generate material risks that enterprises that lack experience in commercial equipment leasing often accept.

Topics: commercial equipment

Equipment leasing is an attractive equipment-procurement option for many enterprises for numerous reasons, including reduction of upfront cost, improved cash flow management, and elimination of equipment ownership risk.

Topics: Equipment Leasing, Equipment Lease, Equipment Financing

Many CFOs and other financial managers have bought into the asset finance philosophy that equipment leasing supports a prudent asset refresh strategy.

Particularly with information technology, equipment obsolescence can be a problem because of short asset life cycles, typicall no more than three years. When equipment is purchased, the cost is capitalized, and depreciation expense can linger after obsolescence. When it is leased, so the theory goes, this threat of obsolescence before the equipment is “paid for” is eliminated.

Topics: equipment return, asset finance, equipment refresh