Learn about this little unknown clause in office equipment lease agreements.
If you plan to lease equipment or have a lease in place, you owe it to yourself and your company to read the fine print carefully.
Most office equipment lease agreements contain a “Hell or High Water” clause to bind the purchaser to make the specified payments in the agreement regardless of any difficulties they may encounter with the equipment or with the servicing dealer. As most office equipment dealers use third-party leasing companies, they do not have the flexibility to amend your lease in any way.
To protect your business, look for a partner that has true in-house leasing and demand that the Hell or High Water clause be omitted from your equipment lease. In-house leasing allows the dealer to have flexibility in working with your business that is not easily available with third party leasing arrangements.
As Spring often brings heightened awareness to disaster preparedness, checking your lease agreements is another item add to your checklist. Read more about in-house leasing here.
Ralph Mello – General Counsel
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