Common Pitfalls of Leasing Transactions
A short list of common mistakes are,
| 1. | You and you lessor representative agree at any time that, "No need to put it in writing, I will remember our meeting and what we discussed" |
| 2. | Accepting or signing minor contractual changes presented by the lessor well after the negotiations were completed |
| 3. | Not conducting a thorough legal and professional lease review of all lease documentation that would be required to complete the transaction, before awarding the business to the lessor |
| 4. | Complete the purchase of the asset, then contact the finance department to arrange lease financing |
| 5. | Complete a lease transaction with the same company you negotiated the purchase of the asset from and believing your leverage with the vendor/lessor is enhanced or increased! |
| 6. | Believing that the lowest rental factor per $1,000.00 is the best deal |
| 7. | Believing all lease transactions are the mostly the same standard process |
| 8. | You find yourself thinking…."I thought the contract terms were standard practice in the leasing industry" |
| 9. | Most of all, signing a lease transaction that you are quite certain that you think you mostly understand |