Accessibility links

MENU

+44 (0)1707 897000

Leasing equipment

Checklist for what to consider when leasing.

  1. Resources
  2. Your business
  3. Developing your business
  4. General

At Lovetts we can provide businesses in the Hatfield 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.

Print
  Tick
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 Hatfield area and are looking for support and help from experienced accountants and business advisers, contact Lovetts.

The latest news

23 Jun

UK economy back to pre-covid level by end of year

Despite the delay on the lifting of all lockdown restrictions for another month, the UK economy is set to bounce back to its pre-COVID level towards the end of 2021, according to the latest figures from the Confederation of British Industry (CBI).

22 Jun

UK Infrastructure Bank opens for business

The first ever UK Infrastructure Bank has opened for business with the aim of investing in sectors such as clean energy and transport.

21 Jun

Delayed EU import declarations due

The first supplementary delayed declarations on imports of non-controlled goods from the EU are due from 25 June 2021, HMRC has reminded businesses.