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
The inherent risk in equipment financing is often under appreciated by enterprises as they conduct a lease vs. buy analysis, as well as when they compare lessors.
Topics: Fair Market Value, Lease Agreements, interim rent, end of lease notice, Equipment Financing, equipment return, lease schedules
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
Learn why almost everything you know about equipment leasing is wrong.
