Creating your own office space would be difficult without breaking the bank. Not to mention that equipment is just too expensive to buy. But with office equipment leasing, you’ll be able to acquire and use the equipment you need while still effectively managing your daily operational costs.
What is office equipment leasing?
Office equipment leasing is another type of contract of lease. In a lease, the lessee (the one using the equipment) is granted the use of a leased property by the lessor (or the owner) subject to regular payments until a specific date. End-of-lease options will also be included in the contract, where the lessee can:
- retain the office equipment where ownership is transferred to the lessee; or
- return the office equipment to the lessor; or
- contract another office equipment lease, plus any of the other first two options
Across the market, there are different types of leasing contracts such as equipment leasing. As for office equipment leasing, the properties that can be leased include:
- office furniture
- business printers, copiers, or scanners
- desktop computers or laptops
- software, programs, and solutions
Because of the high costs of these equipment, it’s usually hard for businesses to buy them up front. But with office equipment leasing, the costs are spread over a period (usually a year or two) instead of a one-time full payment. This lessens the capital burden of businesses, and at the same time, allows them to use the necessary equipment for their operations.
Below is an explainer from a sample leasing company about the advantages of equipment leasing over taking a loan when acquiring your own equipment:
Interested in consulting an expert about your office equipment lease? Contact a lawyer near you. If you're in Halifax, reach out to one of the top asset equipment finance and leasing lawyers in Nova Scotia as ranked by Lexpert.
How does office equipment leasing work?
Office equipment leasing works just like you’re taking out a lease contract with a financial institution such as a bank or a leasing company. It usually starts with finding the right lessor, agreeing on the contract, and implementing the contract.
Here's how office equipment leasing works:
Finding a lessor
Choosing a suitable lessor that can cater to your specific needs is the first step. Your lawyer, or any other trusted source, can help you look for the best asset equipment leasing company for your business.
After you’ve reached out to your prospective lessor and sent your application, you’re usually evaluated based on their standards (e.g., credit score, capacity of your business to pay, etc.).
Finalizing the lease contract
When your application is approved, the next step would be to finalize the lease contract. At this point, your lawyer can help you review the contract and see if there is room for negotiation, while still making the contract beneficial for both parties. If all is good, you and your lessor sign it, signifying that both parties agree to its terms and conditions.
Implementing the lease contract
After signing the deal, the office equipment will be delivered to you (costs will depend on the contract). Here’s when the terms on the payment must be followed. Parties must respect each other’s rights until the contract ends.
How can a lawyer help in office equipment leasing?
Here are just some of the ways that a lawyer for asset equipment leasing can help you as a lessee:
- guide you on how an office equipment lease works
- review your lease contract from your lessor
- help in resolving disputes with your lessor
We’ll go over these points in more detail:
Guide you on how office equipment leasing works
Every office equipment lease is unique due to these factors:
- every financial institution that offers financing or lease will have their own personalized offers
- when warranted, the lease contract may be redefined by both parties after negotiations
To guide you along the way, your lawyer can ensure that your needs are met.
Applicable laws to office equipment lease
Your and your lessor’s rights and obligations are spelled out in the lease contract. For this, the laws on contracts would apply when it comes to your lease contract’s implementation and interpretation.
This is also where your asset equipment leasing lawyer comes in — they can explain to you how the lease contract should work. Not just when a legal problem arises, but also to prevent one from happening.
Review your lease contract from your lessor
In most cases, your lessor or the financial institution that offers office equipment lease would be the one who will draft the lease contract. These types of contracts are called contracts of adhesion, where your ability to negotiate the contract is diminished.
As such, having an asset equipment leasing lawyer on your side to review and interpret the lease contract is important. They can explain the contract to you in simpler terms and even tell you which parts you should be careful with.
After a thorough review, you can then put forward some preferences which can modify the lease contract. However, applying the principles of contracts law, it’s important that the other party (the lessor) will accept your suggested revisions. Otherwise, there will be no lease contract to speak of.
Help in resolving disputes with your lessor
If things go south between you and your lessor, your lawyer can help you address them by, of course, reading your contract. Remedies for both parties are usually set forth in the lease contract, according to the legal problem that may possibly arise. If it’s in your favor, your lawyer can help you enforce them; or your lawyer can help defend you when it’s the other way around.
For more info on asset equipment finance and its period, check out this article.
If you’re looking for a law firm to retain for your office equipment leasing, contact one of the Lexpert-ranked best asset equipment finance and leasing law firms in Canada.