Printable Equipment Lease Agreement And A Complete Guide
Are you looking for the best equipment lease agreement?
There are many ways to lease equipment, but generally it doesn’t matter what type of equipment you wish to lease, whether it’s is for business or personal use, legally you will need an Equipment Lease Agreement.
This is a legally binding contract which sets out the terms and conditions of the lease between the lessor and lessee.
What Is The Importance Of Using An Equipment Lease?
- It is a legally binding contract which sets out the terms of conditions of the lease.
- It states exactly what obligations the lessor and lessee have to each other.
- It sets out the terms of payment and the time frame of the lease.
- It helps avoid costly legal fees in the event that problems occur with either party.
- It is a recognized and legally binding document.
Usually you can choose to lease equipment, either using a third party who arranges leases or using a leasing program offered by the equipment provider.
Equipment Lease Agreement
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Our Equipment Lease Agreement is a professional document which is legally recognized and available at a click of a button! Which is great news for YOU! because it gives most people and businesses the chance to read through the contract and prepare themselves before they sign on the dotted line.
Some Provisions In An Equipment Lease Include The Following;
- Who your lease is with.
- What you are leasing.
- Lessees responsibilities.
- Lessors responsibilities.
- Monthly payment schedule.
- Incidental charges.
- Surrendering rights.
- Default details.
- Indemnity and liability statement.
- Ownership rights.
Our Lease Agreements Offer Protection Of Your Rights.
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Considering this is a legal document, at $19.99 it is quite good value, and indeed once paid for, you are able to use this document template as many times as required. However, if you decide to purchase the lease TODAY, you will be entitled to a 25% discount, giving you a substantial saving of $5.00!
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How To Easily Print Your Equipment Lease Agreement Now!
To purchase your agreement click the “Order Now” button below. You will then be automatically directed to the secure order page on the website. Payments are accepted with all major credit cards, visa debit cards and pay pal.
The process for ordering an instant lease is quick and simple.
Purchase the lease agreement then a link will appear on your device screen.
Click the link to open the lease document, then print.
Use a pen to fill in the blanks and sign.
So quick and easy!
Equipment Lease Agreement
Regular Price – $19.99
Discount Price – $14.99
You save $5.00! (25%)
How An Equipment Lease Helps You To Get Any Heavy Machinery in 2019.
An equipment lease is a contract between a business owner who needs heavy equipment for a limited period of time and the owner of the equipment. In the sections that follow, you can find a detailed description of an equipment lease, its contents, benefits and how to hire heavy equipment using a lease.
What is an equipment lease agreement?
An equipment lease is a contract between a business owner who needs heavy equipment for a limited period of time and the owner of the equipment. An equipment lease allows a business owner to get for example heavy equipment for a fixed monthly rent as a fee.
The business owner who hires the equipment is referred as lessee and the equipment owner as lessor. You can get a whole range of equipment with an equipment lease starting from hand held tools to heavy earth moving machines.
Equipment leasing is changing and evolving in a continuous manner. It is due to various dynamics in the economy, changing needs and technology. The White Clarke Group’s annual report on Global Leasing shows that North America region, (US, Canada and Mexico) has a whooping US$ 445.8 billion as business volume in equipment leasing in 2017. New challenging projects need new equipment with rise of Artificial Intelligence and machine learning.
What are the most common equipment leases?
An equipment leasing can be of two types, Capital and Operating leases. A Capital lease is also called a long term lease. Each of these lease types have different needs and purposes.
A capital equipment lease accounts the ownership of the equipment. It is reflected on the lessee balance sheet as an asset. A capital lease treats the equipment under lease as a bought equipment by lessee as company’s asset. It treats the equipment under lease as a loan for lessor, who lent the equipment. Capital leases are long term leases for equipment that does not become obsolete over period of time.
At the end of lease tenure, the lessee might get the ownership of the equipment. The capital equipment lease enables lessee to purchase the equipment at a less than market value. The tenure of the capital lease is at more or equal to 75% of the asset’s life time. As the lessee owns the equipment, he has rights to claim depreciation and interest expenses. Lessee needs to pay insurance, maintenance, taxes and take risks on its operation and failure.
An operating lease equipment is more like renting.
The rental or lease payments can be treated as an expense by the lessee. An equipment with an operating lease is not reflected as an asset in the lessee’s balance sheet, but can accommodate the rent or fees as an expense.
It assigns ownership with the lessor during and after the lease tenure. There is no option for the lessee to bargain to buy the equipment. The tenure of the lease is less than 75% of assets life time. The lessee pays rent for using the equipment and then the lessee has the rights to use the equipment.
A lessee need not pay for maintenance of equipment as the risk and benefits are with the lessor. An equipment lease can also have types as small, medium and large ticket leases based on the value of the lease. A small ticket lease is for equipment that is up to $100,000 in value. A large ticket lease is for equipment that is more than $2 million. A medium lease for equipment falls in between $100,000 and $2 million.
What is usually included in an equipment rental agreement?
An equipment rental agreement has several components similar to other lease contracts. It has its own clauses and sections which are specific to hiring equipment. You can find the contents of a typical equipment lease below.
- Names of Parties. An equipment lease first identifies the names of the parties, lessee and lessor. It also captures the effective date of the lease, tenure, and type of equipment.
- Recitals. Describe the background information about the parties, the intent to lease the equipment. It does not detail any specification of the equipment.
- Lease of Equipment. This clause specifies the lease and acceptance of lease by both the parties in the equipment contract.
- The term. This clause specifies the time period with clear start and end dates. The start date is effective date from which the lease comes into effect, the date the lessee receives the equipment. After the lease tenure, the lessee can either extend the lease or return the equipment. An optional section can allow a lessee to buy the equipment at the end of the term.
- Shipment. This clause states the mode, shipment, ownership and date the equipment reaches the lessee’s premises and how the equipment is returned back to lessor.
- Rent Payments. This clause has rent payment by the lessee and it is obligatory on part of lessee to pay the rent or fee as agreed upon by both the parties through negotiations. It may include any due date by which the rent needs to be paid and penalty for late payment.
- Security Deposit. This is the amount the lessee pays the lessor as a guarantee for the condition of equipment. The lessor returns this amount to the lessee upon the end of lease agreement. This is an optional clause.
- Ownership. This states who owns the equipment during the lease tenure and after the lease ends. It also clearly states any transfer of titles, right to use and conforms to all required laws in use and possession of the equipment.
- Lessor’s Representation and Warranties. Is a clause on a lessor’s representations, promises on the proper functioning of the equipment and usefulness to the lessee. It also captures any warranties on the equipment that needs to be transferred to the lessee.
- Lessee ‘s Representation and Warranties. The lessee’s promises about the proper use of equipment and abide by the terms and conditions in the lease agreement. It describes about the good condition of the equipment hired for rent and its proper usage by the lessee. It also includes how to pay any warranty claims, pay the rent and as to not violate any law of the state.
- Insurance. This clause describes the insurance the lessee needs to get for the equipment and provides a copy to the lessor. Any insurance that already exists must be included in the clause. The lessee can change the coverage of insurance after prior notification to the lessor, 30 days before change.
- Taxes and Fees. This clause describes about the need for the lessee to pay all applicable taxes and fees during the lease tenure. The lessee will provide relevant copies of these payments to lessor.
- Loss and Damage. The lessee and the lessor both negotiate and agree on the best possible method to handle the loss and damage of the equipment. It covers how to handle the loss or damage or missing of any component of the equipment and what percentage of cost the lessee has to bear. The lessee may have to replace or pay the fair market value of the loss or damage to the equipment,
- Default. This clause has a list of events by the lessee that are noted as default. If the lessee does any of the default event, it gives the lessor the right to end the lease and demand penalty or action as defined in the Rights of Lessor on Default.
- Rights of Lessor on Default. This clause describes the right of the lessor to end the lease when the lessee performs any one default. The lessee would need to pay costs, deliver the equipment, or take corrective action. The lessor has right to claim the equipment from lessee’s possession.
- Interest. This clause describes the interest the lessee has to pay on any unpaid amounts until the payment is made. The interest gets added from the date the amount is due. There is limit on the interest rate as per state law.
- Return of Equipment. This clause describes that the lessee must return the equipment on their own expense unless the lease is extended or the lessee buys the equipment.
- Successors and Assigns. It states that the parties’ rights and obligations will be passed on to a successor organization.
- No Implied Waiver. It explains no waiver of rights is implied to each of the party to other under the lease and each party is obliged to fulfill those rights and obligations. It needs to include sections like option to renew, purchase of the equipment, list of official addresses for legal correspondence, and any other state laws that need to be followed. It also has attachments for Exhibit A describing in detail of the equipment under lease including make, serial number, model and other specifications.
What are the advantages of equipment leasing?
When you hire any equipment under lease there are several benefits that far outweigh buying. However, under specific cases, buying equipment may be a better option.
- No Huge Down Payment. Hiring equipment under a lease allows you to get any equipment without a huge down payment. You can get the needed equipment by paying a nominal monthly rent fee under lease.
- Get Cutting Edge Technology. With ever changing and challenging projects, you may need equipment with the latest technology. With equipment, its capacity, capability and functionality keeps changing. Only an equipment lease can get you the needed equipment to overcome these challenges.
- Competitive Advantage. When a lessee has the latest equipment with cutting edge technology, it provides a competitive advantage over peers. This helps to upscale and expand your business horizon into wider areas.
- Tax Benefits. The lessee can get a tax benefit under Section 179 of U.S. Internal Revenue Code, when the depreciation is included as an expense. It reduces the tax you need to pay.
- Minimum Maintenance Worries. The equipment hired with a lease is usually a new and has covering warranties and require minimal maintenance. Also, usually lease companies take responsibility for maintenance.
What do I need to know about hiring heavy plan equipment and machinery?
When you are planning to hire heavy equipment, first you need to have a thorough understanding of your requirement and the equipment that can serve your needs best. You need to do research and narrow down the best types of equipment and the leasing companies that offer the type of machinery you’re looking for.
You need to be aware of how long you need to hire this machinery as renting and hiring plans are daily or monthly basis. You need to ensure you do not over estimate or under estimate with wide margins and lease for a longer duration than you need. You may be able to request having an extension clause in your lease for additional short periods.
Some equipment leases may have FMV buy out option, or a TRAC lease option. You need to make sure you let your lessor know that you intend to return the equipment after the lease, or if you have no plans to buy it. Your company credit score plays a role to determine the monthly payment amount.
The better the score, lower the monthly amount you need to pay. Usually monthly rent costs up to $40 to $60 for every $1000 the machine costs. If a machine costs $10,000, the monthly rent comes to $400 to $600.
The equipment rental is booming with Government projects, rising economies, budget restraints and stiff completions. All these thrust contractors and entrepreneurs to hire more and new equipment.
Why Do People Need To Use Equipment Leases?
An equipment lease is a viable option when the limited resources of a starting business may not allow it to purchase expensive equipment necessary for its operations. In fact, even established corporations still consider an equipment lease, especially when it considers the factor of obsolescence. Computer systems are one good example.
The terms of a lease contract still need to be examined by the prospective renter. There are after all other costs to be considered other than the rental fee itself. Take for example insurance. Most lessors (the one renting the equipment) pass on the cost of insurance to its lessee.
In some cases, even the maintenance of the equipment is borne by the renter. So, review this term and consider the cost if you cannot altogether avoid the insurance or the maintenance. On a positive note, an equipment lease can also benefit the renter. If you are the one renting, try to look for terms that allow you to purchase the equipment at the end of the lease.
This way you not only get to use the equipment without heavy cash outlay, you even get to chance to own the equipment at a fraction of the cost at the end of the term. Whatever your considerations you have in mind in opting for an equipment lease, it is best to study if not propose your desired terms you would like included in the lease contract.
Take The Easy Way – Instantly Print An Equipment Lease Agreement Form
An equipment lease contract is an alternative to an outright purchase. Instead of paying for the whole price of the equipment upfront, the renter pays equal monthly rentals for the duration of the lease. Equipment leases are common to business establishments who would rather have the cash invested in its main line of business.
Yet not every equipment contract is automatically viable for a business. The terms have to be carefully studied. There will be other factors that can make the lease sometimes more expensive than purchasing it outright. Examples of these factors are insurance, interest and other finance charges that are factored into the monthly rent.
So how would an equipment owner come up with a lease form? How does he ensure that all the cost factors are included in the monthly rent? How does he insure his rights are protected as well as protect those of the renter?
Or how can a prospective renter of equipment familiarize himself with a lease contract enough to know and detect a disadvantageous contract? The best and most inexpensive way would be to purchase an equipment lease from online. It will assure both parties of a well written and comprehensive form that clearly explains the provisions.
Benefits Of Instantly Printing Your Own Lease Forms
- Saves You money.
- Can be used by lessor and lessee.
- Recognized legal document.
- Gives both lessor and lessee time to consider the contents.
- You are able to make unlimited copies.
- Available to Print Now!
- Available in both Microsoft Word and PDF formats.
The legal information on this page is not a substitute for professional legal advice, read the disclaimer. This page does not create an attorney-client relationship, nor is it a solicitation to offer legal advice.