Leasing equipment

Checklist for what to consider when leasing.

At MRO Accounts we can provide businesses in the Hemel Hempstead area with advice and support on a wide range of business issues. This article includes information on leasing equipment.

Leasing equipment rather than buying it can often be better for your bottom line, but it is important to read the fine print and weigh up all the factors before signing anything.

Above all, shop around and compare deals.

Below is a checklist of the most important factors to consider.

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Is the initial term of the lease and the amount and timing of rental payments clear?  
Do the terms of the lease provide an option for renewal and if so on what terms?  
Are you allowed to sublease the equipment?  
Who is responsible for maintaining the equipment? Will your maintenance costs be higher or lower than if you owned it?  
Are you allowed to make any modifications to the equipment?  
Who is responsible for ensuring the equipment conforms to any existing or future regulations it might be subject to?  
What happens if the equipment is lost, stolen, damaged, or destroyed? Does the lease specify what liability if any you would incur?  
Who is responsible for insuring the equipment? To whom would any claims be paid?  
Can you change the lease if your circumstances change?  
Do the terms of the lease include a right to purchase, and if so on what terms?  
Does the lease allow for premature termination, and if so in what circumstances? What penalties, if any, does premature termination incur?  
What costs will be incurred at the termination of the lease, and how much of this will you have to cover?  

This list is by no means comprehensive. There are many other potential pitfalls with leases such as warranty issues, regulatory requirements, taxes, license fees, and public liability.

If you are in the Hemel Hempstead area and are looking for support and help from experienced accountants and business advisers, contact MRO Accounts.

What our clients say:

“Working with Melody is an absolute pleasure. She handled my accounts with complete unflappable professionalism and navigated her way thought the HMRC hoops. In my first year of business I was employed, unemployed and self-employed, all within 12 months - not a simple situation! And she does it all with a smile :)”

Thank you Mel, you let me get on with my job confident that my accounts are in safe hands

Dee Fagg, 3D-VA

“I have known Mel for 6 months and in that time she has managed to totally organise my accounts and make me company be more efficient, what used to take me a long time, takes her a very short time, she makes it seem easy and is able to make me understand what I should be doing and the easiest way of doing it! My accounting life is now so easy not a time to be dreaded!! Thank you Mel!”

Claire Lee, Venue Queen Ltd

“MRO Accounts have been very helpful in the early stages of getting my business started, with clear advice and guidance that has really helped me sort my finances out. MRO Accounts have always been very prompt and speedy in dealing with any of my queries, which is very important to me and gives me every confidence that I am dealing with professionals. I wouldn't hesitate to recommend their services.”

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