The term “fair market value” seems straightforward enough, but it doesn’t offer much definition from a legal standpoint—a reality that can come as quite a shock to lessees when they receive “fair market” valuations that are much higher than what the equipment would actually cost to purchase on the open market.
Topics: Fair Market Value, Equipment Leasing, end of lease options
Equipment leasing is an appealing equipment financing method for many enterprises, but it involves substantial risks if not managed properly.
Topics: Fair Market Value, Equipment Leasing, Lease Agreement, Lease vs Buy, leasing, end of lease options, interim rent
Equipment "fair market value” (FMV) is an ambiguous term that only finds definition within the terms of the equipment lease agreement. So it’s a mistake to assume that simply because a lease allows purchase or extension for “fair market value” that the value is mutually understood without further definition.
Topics: Fair Market Value, Equipment Leasing, Lease Agreement, end of lease options
Lease rates are obviously a primary driver of lease performance, but the contract terms of the lease agreement are often what actually makes or breaks the lease's performance. Yet, all too frequently, lessees make easily avoidable lease agreement mistakes that can dramatically escalate their lease cost.
Topics: Equipment Leasing, Lease Agreement, Lease vs Buy, end of lease options
When making lease vs. buy decisions about equipment procurement, it’s crucial for enterprises to understand how equipment leasing companies earn profit. This knowledge also is indispensable when selecting an equipment leasing company.
Unless they are traditional capital “rent-to-own” leases, equipment lease agreements usually contain considerable risk for lessees. Identifying these risks and minimizing them through negotiations and operating adjustments are essential elements of an efficient enterprise-wide equipment leasing program.
Topics: Lease Agreement, end of lease options, end of lease notice, notice period
Faced with rapidly evolving, always-changing health care technology—as well as financial pressures such as squeezed margins, low investment yield, and tightened credit —many hospitals that belong to the HFMA are relying more than ever on equipment leasing.
Topics: Fair Market Value, Equipment Leasing, Lease Agreement, hfma, Lease vs Buy, end of lease options, Hospitals, Lease Accounting Updates
Corporate financial professionals love the predictability of equipment leasing. By leasing, the cost of the equipment can be can spread over a fixed period with set lease payments. By exchanging the relatively unpredictable cash flow of equipment ownership for unchanging lease costs, cash flow forecasting can be more reliable and more easily formulated.
Topics: Equipment Leasing, financial services, end of lease options, interim rent
Learn why almost everything you know about equipment leasing is wrong.
