Guest Blog Post Authored By: Lori Wolstencroft, Director, Business Coordination, National Leasing
When you’re ready to lease your equipment, you don’t want to spend hours poring over pages of fine print just to make sure you know exactly what you’re signing up for.
It’s why we try and keep our leasing contract short and simple.
We have some terms and conditions, too. Although they aren’t as tough to read as those nitty-gritty legal terms you’ll find in your mortgage contract, we understand you might not look them over in your excitement to get equipment. That’s why we’re here to help. Don’t worry; we won’t explain every term and condition. We’ll only answer some of the more common contract questions that customers ask.
1. When are my payments?
An initial payment may be due on the date that we pay the equipment supplier for the equipment. The amount of the initial payment will vary specific to your deal, but may include a security deposit, administration fees and/or a pro-rated rental from the day the equipment supplier is paid to the first of the following month. You’ll receive an invoice for this initial payment and are encouraged to speak with your National Leasing Account Manager if you have any questions.
If your lease requires an initial payment, it will likely happen within a couple of days after the equipment has been delivered.
All lease payments are due on the first of the month and are preauthorized debit payments unless you specify an alternate payment method. If you’ve structured your lease for monthly payments, you’ll make payments on the first of each month. If you’ve chosen a quarterly payment schedule, you’ll make payments on the first of the month after every three months.
For example, let’s say you get your equipment and we pay the equipment supplier on April 22.
You signed your leasing contract, received your equipment and you’re excited to put it to work for your business. Just remember, an initial payment may be due immediately after you receive your equipment, and your standard lease payment stream starts on the first of the following month.
2. Who can sign my contract and make payments?
Anyone who is an authorized signor of your company can sign your lease contract. That could be you, the treasurer of your company, a director or anyone else you’ve legally given signing authority to.
The name on the contract must be the same as the person or business using the equipment and making the lease payments. If you have a valid reason for another individual or business making your payments, please tell us – preferably as early as possible in the process – before you sign your contract.
Remember: To get your equipment, make sure someone from your company who has signing authority signs your contract and that you’ve told us in advance which person or entity will make your lease payments.
3. What’s this about equipment insurance?
We require insurance for the equipment we lease, and we rely on you to provide us with proof that you have coverage. If you don’t provide us with evidence that you have insurance, your equipment may be covered by us. We’ll send you a notification explaining that we’ll protect the equipment from loss or damage on your behalf. We’ll quote you the amount and include the costs in your future payments.
You may choose to add the equipment to your existing insurance, purchase insurance for the equipment or budget for protection costs during your equipment lease.
4. What if my equipment needs repairs or a warranty?
If you encounter any issues with your equipment or need a warranty, you should contact your equipment supplier. We’re happy to help with anything equipment finance related but we don’t really have the means to fix or replace equipment. Your equipment supplier can help you out with repairs, replacements or equipment warranties.
You’re ready to sign!
We hope this cleared up any questions you might have with our leasing contract. And now that you understand it a little better, you’re ready to get your equipment and sign your contract!