Questions to Ask

With so many business start-ups nowadays, the need for equipment leasing is also increasing. However, with too many of us in the industry, Axis Capital Group Inc. With a group of direct lenders of quality equipment based in Grand Island, Nebraska gets a lot of confused questions and dilemma from business owners. To save us all of our precious time, here are some questions that you can prepare when you are planning to lease equipment.

1. How and Where Will We Be Using the Equipment?

As a given, it may be impossible to lease an equipment in Nebraska when you are in Jakarta, Indonesia. However, some companies may permit shipping of equipment provided that rules and terms are followed.

Review and determine how your company will use the equipment and the length of time it will be needed. This will help determine the appropriate level of investment for a lease. To help decide if leasing is a profitable financing option, perform a simple cost/benefit analysis that compares the periodic leasing payment to the revenue you expect to generate from using the equipment.

2. How Well Does the Equipment Finance Company Representative Understand My Business?

Generally speaking, it is beneficial to work with someone who understands your particular market, regardless of the service you are seeking. This is even more crucial with regard to leasing. The equipment finance company's understanding of market fluctuations and other factors that impact your business can greatly affect the successful outcome and desirability of a lease contract. You may also want to get a good representative who can answer your needs. If not, then you are probably dealing with a scammer.

3. What are the Total Lease Payments and Costs?

Asking this question will eliminate any future misunderstandings about the number of payments, the total monthly payment due, and any additional costs related to insurance, taxes, and other charges. In addition, ask if there are additional costs associated with the lease that may occur during the course of the lease term, including late payment fees and other surcharges.

4. What is My Responsibility if the Equipment is Damaged or Destroyed?

You should know your company's liability for the equipment you are leasing before you sign a lease agreement. This question will help you to determine whether you must pay for or replace lost or damaged equipment. You should review your options as well as your responsibility to avoid complaints in the end.