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.
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
In equipment leasing, there’s generally an inverse relationship between risk and cost. A high-risk equipment lease generally has a lower lease rate. Many enterprises understandably seek the lower rate, but this strategy will only be effective if the risks are well-understood, so that they can be minimized in the lease agreement and properly managed during operations.
Topics: Equipment Leasing, Lease Agreements, Equipment Lease, Leasing Myths
Learn why almost everything you know about equipment leasing is wrong.
