Below are responsibilities you should keep in mind while using and handling leased business machinery and equipment:
1. Keep the items you received in good working condition. Yes, you may not have ownership over the machines, vehicles, devices or tools, furniture and office fixtures you use. However, you are bound by your agreement to maintain them in good working condition. This is very important for you to avoid making additional payments on penalties and fines for equipment damages.
Now, for you to live up to this responsibility, we advise you to subject the equipment you use to total preventive maintenance or TPM. You should also come up with a regular schedule for equipment repair and maintenance works. This way, you can retain the efficiency of the machines and devices you use. Moreover, you can rely on your equipment to run smoothly until the term of your lease ends.
2. Prepare the equipment for eventual purchase, either by your small business or by other interested parties. So, apart from keeping the items in good working condition, you should also look into their overall appearance. Ask yourself the following questions: Does the machinery, furniture or device look new or completely worn-out? Will I still be interested to purchase it once the term of my lease ends? Does it look appealing enough to convince other small or startup business owners to buy it?
Keep in mind that the answers to these questions will help you determine how well youve managed and handled the equipment and if there are still areas for improvement you can work on to keep it in its best working condition and appearance.
3. Find time to review the Hell-or-High Water clause in your contract, from time to time. After all, the terms and conditions of this clause will require you to submit payments, regardless of the events or unforeseen occurrences which could reduce the efficiency and performance of the equipment youre using. So, be familiar with the stipulations of this clause and make sure that you abide by them, at all costs. That way, you can avoid incurring additional payments that could eat up a significant percentage of your working capital.
4. If there are changes in your lease contract, dont hesitate to ask for additional information from the equipment manufacturer or supplier. Keep in mind that being well-informed of the modifications and alterations in your agreement will help you decide whether or not you should go for them. So, dont hesitate nor feel embarrassed to ask for additional information before making up your mind. In fact, we advise you to look for a business attorney or a certified public accountant, who can explain to you the details of your lease and who can provide you with professional advice before you decide on the matter.
Just remember not to let these professional decide for you. Always remember that as the business owner, it is you who knows whats best for your enterprise. So, just listen to what they have to say and use the information youll receive to come up with a sound business decision.
1. Keep the items you received in good working condition. Yes, you may not have ownership over the machines, vehicles, devices or tools, furniture and office fixtures you use. However, you are bound by your agreement to maintain them in good working condition. This is very important for you to avoid making additional payments on penalties and fines for equipment damages.
Now, for you to live up to this responsibility, we advise you to subject the equipment you use to total preventive maintenance or TPM. You should also come up with a regular schedule for equipment repair and maintenance works. This way, you can retain the efficiency of the machines and devices you use. Moreover, you can rely on your equipment to run smoothly until the term of your lease ends.
2. Prepare the equipment for eventual purchase, either by your small business or by other interested parties. So, apart from keeping the items in good working condition, you should also look into their overall appearance. Ask yourself the following questions: Does the machinery, furniture or device look new or completely worn-out? Will I still be interested to purchase it once the term of my lease ends? Does it look appealing enough to convince other small or startup business owners to buy it?
Keep in mind that the answers to these questions will help you determine how well youve managed and handled the equipment and if there are still areas for improvement you can work on to keep it in its best working condition and appearance.
3. Find time to review the Hell-or-High Water clause in your contract, from time to time. After all, the terms and conditions of this clause will require you to submit payments, regardless of the events or unforeseen occurrences which could reduce the efficiency and performance of the equipment youre using. So, be familiar with the stipulations of this clause and make sure that you abide by them, at all costs. That way, you can avoid incurring additional payments that could eat up a significant percentage of your working capital.
4. If there are changes in your lease contract, dont hesitate to ask for additional information from the equipment manufacturer or supplier. Keep in mind that being well-informed of the modifications and alterations in your agreement will help you decide whether or not you should go for them. So, dont hesitate nor feel embarrassed to ask for additional information before making up your mind. In fact, we advise you to look for a business attorney or a certified public accountant, who can explain to you the details of your lease and who can provide you with professional advice before you decide on the matter.
Just remember not to let these professional decide for you. Always remember that as the business owner, it is you who knows whats best for your enterprise. So, just listen to what they have to say and use the information youll receive to come up with a sound business decision.