Are you looking at the options available to borrow equipment or gear to complete a project or you want to rent out equipment that is own by your company or organization? In either case, an equipment lease agreement should be created to make the arrangements clear. It would be important to have this contract in place before any equipment is handover. This way, any concerns or questions that either party has can be resolved after referring to the lease agreement.
Equipment Leasing can be done in two ways, namely lease to own or fair market value. The lease to own agreement will allow the company or organization that is using the equipment to buy same for a small or nominal sum when the contract ends. This type of lease effectively works similar to loan financing. If a loan is structured as a lease it can provide extra protections to the lessor in the event that the payments are not forthcoming. The lessor can take back the leased equipment after missed payments without giving the lessee any compensation for past payments.
For fair market value lease agreement, the company or organization using the equipment often has the right to buy same for its market value when the contract ends. The lessee is effectively paying for the absolute right to use the leased equipment for a time period.
An equipment lease agreement can be used if you:
The equipment lease can be used to outline the conditions under which an organization or a person is able to rent equipment. This agreement will explain the rights and responsibilities of both parties as it pertains to the equipment rental. When completing an equipment lease form, you should include details such as:
You can download one of the equipment lease forms online if you need help to create your agreement.Lastly, there are equipment lease or payment calculator tools readily available to help you with the costs. An equipment lease calculator will give an approximate estimate for the amount that is required for the monthly payments. To get the most effective results, you must provide the equipment value, the type of lease, the rates, and the term or the length of the lease.