0
This Equipment Lease ("Lease") is made effective as of ____________ (Date), by and between _________________ ("Lessor") and _____________________ ("Lessee"). I
The agreement of the parties is as follows:
1. Equipment subject to Lease. Lessor shall lease the Equipment (“Equipment”) listed in Exhibit 1.
2. Payment Terms. The Lessee shall make ___ payments of $________, for a total amount of $________. Payments shall be due on the first day of each month, with the first payment due on __________________. The lease payments shall be due without further notice to Lessee of any payment being due.
3. Late Charge. A late charge of 5% of the payment shall be due if any Lease payment is not received within 10 days of the due date. In addition, interest will be charged at the rate of 1.5% per month, or 18% per year, on any unpaid balances.
4. Insufficient Check Charge. Lessee shall be charged $25 for each check that is returned to the Lessor for lack of sufficient or collectible funds or for any other reason whatsoever.
5. Security Deposit. Lessee shall pay a security deposit of two payments or $ _______, at the time this Lease is signed. This deposit will be returned to the Lessee at the termination of this Lease, subject to the option of the Lessor applying it against Lease charges and damages. Any amounts refundable to the Lessee shall be paid at the time this Lease is terminated. The security deposit shall bear interest at an annual rate of 6% from the date paid to the Lessor until the date refunded, based on the total amount of the security deposit.
6. Lease Term. This Lease shall begin on the above effective date and shall terminate on ______________ (Date), unless otherwise terminated in a manner consistent with the terms of this Lease.
7. Location or locations of the Equipment. The equipment shall be located at ____________________________________________________________________during the lease term, and shall not be removed from that location without the Lessor's prior written consent.
8. Operation and Care of Equipment. The equipment must be used and operated in a careful and appropriate manner. Its use must comply with all laws, ordinances, and regulations relating to the possession, use, or maintenance of the equipment, including registration and/or licensing requirements, if any.
9. Maintenance and Repair. Lessee shall maintain at the Lessee's cost, the equipment in good repair and operating condition, allowing for reasonable wear and tear. Such costs shall include labor, material, parts, and any similar items.
10. Alternations. Lessee shall make no alterations to the equipment without the prior written consent of Lessor. All alterations shall be the property of Lessor and subject to the terms of this Lease.
11. Right of Inspection. Lessor shall have the absolute right to inspect the Equipment during Lessee's normal business hours.
12. Equipment Return at the end of the Lease. At the end of the Lease term, the Lessee shall be obligated to return the equipment to the Lessor at the Lessee's expense.
13. Renewal Option of the Lessee. If Lessee is not in default upon the expiration of this lease, the Lessee shall have the option to renew this Lease for a similar term on such terms as the parties may mutually agree upon at the time of such renewal, the end of the Lease period covered in this Agreement.
14. Purchase Option. If Lessee is not in default under this Lease, the Lessee shall have the option to purchase items of equipment at the end of the lease term for the price specified for such items of equipment in the attached Exhibit 1. Lessee shall exercise this option by providing written notice to the Lessor of such intent at least 30 days prior to the end of the lease term.
15. Equipment Acceptance by Lessee. Lessee shall inspect each item of equipment delivered pursuant to this Lease. The Lessee shall immediately notify the Lessor of any discrepancies between such item of equipment and the description of the equipment in the Equipment Schedule. If the Lessee fails to provide such notice before accepting delivery of the equipment, the Lessee will be conclusively presumed to have accepted the equipment as specified in Exhibit 1.
16. Ownership and Legal Status of Equipment. Equipment will be deemed to be personal property, regardless of the manner in which it may be attached to any other property. Lessor shall be deemed to have retained title to the equipment at all times, unless the Lessor transfers the title by sale. The Lessee shall immediately advise the Lessor regarding any notice of any claim, levy, lien, or legal process filed or issued against the equipment.
17. No Warranty. Lessor makes no warranties, express or implied, as to the equipment leased. Lessee assumes the responsibility for the condition of the equipment.
18. Risk of Loss or Damage and Insurance. Lessee assumes all risk of loss or damage to the equipment from any cause, and agrees to return it to the Lessor in the condition received from the Lessor, with the exception of normal wear and tear, unless otherwise provided in this Lease. Lessee shall provide evidence of insurance of the equipment and make Lessor a Named party on the insurance policy. Any lapse of insurance shall be considered a default under the terms of this Agreement.
19. Indemnity of Lessor for Loss or Damages. Unless otherwise provided in this Lease, if the equipment is damaged or lost, Lessor shall have the option of requiring the Lessee to repair the equipment to a state of good working order, or replace equipment with like equipment in good repair, which equipment shall become the property of the Lessor and subject to this Lease.
20. Liability and Indemnity. Liability for injury, disability, and death of workers and other persons caused by operating, handling, or transporting the equipment during the term of this Lease is the obligation of Lessee, and Lessee shall indemnify and hold Lessor harmless from and against all such liability. Lessee shall maintain liability insurance of at least $1 million as further discussed in Section 18 above, entitled “Risk of Loss or Damage and Insurance.
21. Taxes and Fees. During the term of this Lease, the Lessee shall pay all applicable taxes, assessments, and license and registration fees on the equipment.
22. Default. The occurrence of any of the following shall constitute a default under this Lease:
A. Failure to make a required payment under this Lease when due.
B. Violation of any other provision or requirement that is not corrected within 10 days after written notice of the violation is given.
C. The insolvency or bankruptcy of Lessee.
D. The subjection of any of Lessee's property to any levy, seizure, assignment, application or sale for or by any creditor or government agency.
23. Rights upon Default. In addition to any other rights afforded the Lessor by law, if the Lessee is in default under this Lease, without notice to or demand on the Lessee, the Lessor may take possession of the equipment as provided by law, deduct the costs of recovery (including attorney fees and legal costs), repair, and related costs, and hold the Lessee responsible for any deficiency. The rights and remedies of the Lessor provided by law and this Agreement shall be cumulative in nature. Lessor shall be obligated to re-lease the equipment, or otherwise mitigate the damages from the default, only as required by law.
Exhibit 1: Equipment Schedule
Lease End Purchase Price: (Should be included; very important).
Equipment LeaseReview List
This review list is provided to inform you about the document in question and assist you in its preparation. This is a standard straightforward lease agreement. Be sure to file the appropriate local, county, and state liens (UCC forms) against the equipment within the locals where the Equipment is kept by Lessee, according to this Agreement. This not only perfects your interest in the property but also warns off other creditors of Lessee, so they do not attempt to attach the property. If they do, you will have a senior position.
Be sure to establish an end of lease purchase price in Exhibit 1. Do likewise for a renewal period of the Equipment. GE Capital, for example, has found releasing Equipment very lucrative because the proper paperwork is in place and continuation is quite simple because, by the end of the first lease period, most equipment is worth more than its then supposed capital price. Therefore, you may be well advised from a business perspective to encourage releasing for a reduced price at the end of the lease. In this instance, inertia is on your side since Lessee “has” the Equipment and it is always easier to continue as is rather than getting new equipment, and so on.
1. Make multiple copies so you have several sets for your various files, including your corporate records.
2. Be sure to file liens, as appropriate, as described above against your equipment in the appropriate jurisdictions.
Wiki User
∙ 13y ago
Wiki User
∙ 13y agoAn equipment lease is an agreement that specifies the rights and obligations between a lessor (who owns equipment) and a lessee (who uses the equipment). This program provides a simple lease for use in two situations: First, where the equipment will be leased for a monthly rental and perhaps sold to the party who leases the equipment; and second, where the equipment will be leased (or "borrowed") for only a short period of time.
This program does not offer all variations that could be used in a lease, but it does offer the basic provisions, along with the most frequently used options.
Additional paragraphs can be added to cover unique situations. A lawyer should be consulted if you have any legal questions. You should also consult with a tax professional regarding the possible tax consequences of your lease.
Wiki User
∙ 10y agoform_title=Equipment Leasing form_header=Enhance your business without the significant expenses. Equipment leasing is the perfect way to improve your business with ease and affordability. What type of equipment do you need to lease?=_ How long will you need the equipment?=_ How many people will be using the equipment?=_
Add your answer:
Earn +20 pts
Where can one get leasing on business equipment?
Many companies are currently leasing business equipment rather than purchasing. Some sites that offer the option to lease equipment are Lease Experts and Tiger Leasing.
Where can one find reviews for companies that offer office equipment leasing?
Reviews for companies that offer office equipment leasing can be found online, in store and in magazines. Research before making any decisions regarding leasing office equipment.
What are the benefits of leasing equipment instead of buying it directly?
Leasing equipment is typically cheaper than buying the equipment directly. In addition, they are tax deductible and are usually easier to upgrade than when the equipment is bought.
Where can one find information on medical equipment leasing?
Information on leasing medical equipment can be found on the directcapital and healthcapitalinvestors websites, as well as on the tigerleasing website.
What places area leasing equipment for new small business owners?
You should search for leasing equipment providers through a licensed commercial equipment leasing agents that specializes in commercial machinery. You can also get information through classified ads in newspapers and online.
How many Equipment Leasing Companies do you know of in your area?
There is only one large Equipment Leasing Company in Toronto. Home Depot offers a variety of equipment leases, including forklifts and other industrial equipment.
Is It Better To Buy Or Lease The Plant And Equipment?
At the positive note equipment leasing doesn’t tie up your money. The drawback of leasing – there is no resale or salvage value because you don’t possess the equipment or plant.
What is International Leasing?
International leasing is the hiring or rental of contract equipment between two parties, the lessor and the lessee. The equipment is not owned by the lessee but can be used by him for the duration of the lease.
Cutting Company Expenses with the Option of Equipment Leasing?
Whether you are starting a new business or you are operating an existing business, the option of leasing equipment utilized for the services you provide to your customers and clients can be an economically friendly option. Equipment leasing allows you to see how well the products will work for your service options before spending a large amount of company revenue on these products. You will also have the ability of receiving free or low cost repair services when the equipment is not operating properly when leasing these items. Many equipment-leasing dealers offer you the option to purchase the equipment at reduced rates when your lease is completed. You are still able to claim the costs associated with equipment leasing on your business taxes for extra credit when claiming your business expense.
Advantages of equipment leasing?
There are plenty of different advantages that businesses can gain from equipment leasing, but you still need to know what you are doing if you want to get all of the benefits involved. If you want to know all about the different advantages of leasing, then you need to take a look at what kind of business you run and what kind of benefits leasing certain equipment can bring to that business. The biggest perk to leasing is that it provides you with a flexible option when it comes to your equipment. When you can easily switch out your equipment or get rid of it when your lease runs out, it makes things much easier on you as a business owner. Although leasing will not work for every business, it definitely works for certain businesses that use equipment that is being upgraded on a regular basis.
Where can I find equipment to lease for a small company?
It will depend on the type of company that you are leasing equipment for. Large cities will likely have large leasing companies that make equipment available. You might also consider other options, such as auction houses, that might not offer leasing but may offer cheap equipment that will suit your needs if another company is going out of business for any reason or downsizing its equipment.
On what terms is machinery and equipment finance leasing arranged?
As with automobile leasing, the financier keeps the title to the equipment, while the customer typically makes monthly or quarterly payments and has an option to buy the equipment at the end of the lease period.
