The competition for IT equipment leasing is fierce, which puts significant downward pressure on lease rates and increases a lessor’s potential residual risk. IT equipment depreciates in value so rapidly that if it is returned end of lease equipment returns on time per the conditions of most standard IT equipment lease terms, understanding equipment lease agreements it can be very challenging for lessors to make money.
As a result, lessors that specialize in IT equipment leasing often structure lease terms and conditions, which provide for additional revenue streams beyond the regular term rental payments. These additional sources of revenue serve to reduce or eliminate the lessors’ residual exposure. In many cases these terms and conditions can also generate significant profits for the lessor.
Additional costs (required or easily predicted based on lease terms) are often excluded from an organization’s lease versus buy analysis. Lessee's should be sure to diligently track and analyze these costs as their IT equipment leases come to conclusion.
LPRS can help you recognize if your IT leases contain terms and conditions which typically result in additional costs and negotiate terms and conditions, which will cap your risk and cost.
