Equipment Lease Purchase Agreement: Fill & Download for Free

Every small business needs upgraded equipment’s to function effectively. From small offices with workstation; restaurant businesses with commercial ovens, cooking equipment’s and commercial sinks; medical franchises with Lift chairs, MRI Scanners, and X-ray machines; all the way to the large manufacturing processes – every small business have need for equipment’s to operate efficiently.Earlier, many business owners buy equipment’s of their own as they are reluctant to pay monthly leasing fees for equipment’s. Recently, there has been a shift towards equipment leasing over own purchases. Leasing business equipment offers many benefits to businesses over purchasing.1. Stay Current with Latest TechnologyLeasing business equipment not only saves you time and money when it comes to up-gradation, but also allow you to spend more money on the ongoing operations.· Full Financing without Any Down PaymentWith equipment leasing, your business is able to get 100% of the financing and without any down payment. The same is very handy if you are concerned about your business cash flow.· Make Your Business Cycle FlexibleEquipment lease financing make your business cycle the flexibility it needs to work efficiently in the initial stages of the revenue generation.· Service Are At Leasing CompanyIn an equipment lease financing, you can package installation and maintenance in the leasing agreement, along the removal of any outdated equipment you may have (through the lessor) while upgrading.· Get You Taxes More DeductionsOne of the main benefits of leasing business equipment is the tax relief. On the contrary, a conditional sale agreement actually increases tax benefits for higher deductions for your small business.· Let You Planned Cash Flow BetterA business can also negotiate personalized leasing payments that match variations in the business cycle. Instead of outright purchase resulting in budget fluctuations, leasing allows smooth cost planning.· Reduced Risk to BusinessEquipment lease financing lowers the risk and allow you to focus on your business. With equipment leasing, you will use equipment when you need it, and it saves you time, costs, and get rid of the equipment money pits.· Consult with a Leasing ExpertTo maintain your cash flow and to avail the best opportunity, always consult an equipment leasing expert before going for equipment financing. Consider the pros and cons and evaluate whether equipment lease financing is right for your business or not.

In a lease, someone else legally owns the thing in question, and they let you use it in exchange for lease/rent payments over some period of time. Lease agreements are usually for a defined period of time (a year for an apartment, 3–5 years for a car, etc.). Some automobile and equipment leases give the lessee (the one paying the rent) an option to buy the thing at the end of the term at some depreciated price.Financing, by contrast, is when you actually own the thing, but a third party lends you money against it (usually used to pay the purchase price). That debt is secured by the thing in question - so if you default on the loan, the lender can repossess the thing or foreclose on it.

Have already started getting your paperwork in order such as,Non-Disclosure Confidentiality AgreementPersonal Financial Statement form for buyer to completeOffer-to-purchase agreementNote for seller financingFinancial statements for the current and past 2–3 years.Statement of Seller’s discretionary earnings or cash flowFinancial ratios and trendsAccounts payable and Accounts receivable aging reports.Inventory list with value detailLost of fixtures, furnishings and equipment with value detailAsset depreciation schedule from Tax returnSupplier and distributor contactsClient list and major client contractsStaffing list with hire dates and salaries; Employment agreementsOrganization chartPhotos of businessList of opportunities for improvement with Revenue/Profit projections for eachBusiness formation documentsCorporate or Schedule C tax returns for past 2–3 yearsBuilding or office leaseEquipment leases and maintenance agreementsBusiness licenses, certifications and registrationsProfessional certificatesInsurance policiesCopies proving ownership of patents, Trademarks and other intellectual propertyOutstanding loan agreementsDescription of liensProduct/service descriptions and pricesBusiness planMarketing material and samples of marketing materialEmployment policy manualBusiness procedures manualOther documents unique to your businessThen sell your billion dollar businessList taken from the article: Selling your Business? Get your documents in order. By Mike Handelsman, writing for Inc.com.