Masonry Magazine December 2004 Page. 12

Words: Sarah Atkins
Masonry Magazine December 2004 Page. 12

Masonry Magazine December 2004 Page. 12


It's more advantageous for you to work with a leasing company that understands the masonry industry.

Your leasing company should also understand your firm's tax and cash flow requirements. Lease payments are treated as tax-deductible overhead expenses from business income, rather than as wholly owned assets that are depreciated in accordance with IRS schedules.

Residual rates - the equipment's value at the end of the lease term-are another key reason to work with a leasing company knowledgeable with the masonry industry. When a leasing company has the knowledge and experience to set the residual accurately, they can provide you with the best possible lease payment schedule.

3. What is the Total Lease Payment?

Get to the bottom line. Find out the total monthly payment, the number of payments, and any additional lease costs, such as insurance, taxes and other charges. This will eliminate misunderstandings or confusion over the life of the lease. Also ask if there are late payment fees or other surcharges that you could potentially incur during the lease term.

4. What Happens if the Equipment is Damaged or Destroyed?

You should know what your liability is for the equipment you are leasing. Ask whether you have to pay for lost or damaged equipment.

5. Are There Any Other Obligations For the Equipment?

Your leasing company can assume costs for the equipment's insurance, taxes and maintenance. If it does, make sure that these conditions are clearly spelled out in your lease agreement, and then review these provisions with your leasing representative. You can also determine whether you want the leasing company to handle options such as installation, maintenance, asset management and tracking, and other services.

6. What Happens if I Want to Change or End the Lease Early?

You may be subject to additional payments or charges if you want to terminate a lease earlier than the agreement states. An unexpected equipment return to a leasing company can change their portfolio mix, since they plan for assets to be part of their portfolio for a specific period of time. Ask up front what you should expect if you end your lease early or unexpectedly.

The Voice of the Mason Contractor

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CIRCLE 163 ON READER SERVICE CARD
December 2004
Masonry 13


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