ABSTRACT
Lastly, the lease may include provisions to have the equipment removed from the premises by the leasing company, forfeiting the need for the 10 to 15% buy out provision. The client would then have no additional obligation to the leasing company nor the original vendor. Leases may be tailored to reflect smaller monthly payments with a balloon payment due at or near the end of the lease. A large down payment may be made initially, with smaller monthly payments and no buy out payment requirement. Often, with equipment that provides a known potential savings to the client’s operating budget, a lease may be tailored so that the monthly savings equal the lease payment causing the client to suffer no additional budget expense, while enjoying potential tax benefits. Of course, the risks of attaining those monthly savings lie entirely with the client, and any shortfalls are made up by the client to the leasing company.
