Leasing technology is often an attractive option for businesses seeking to access assets cost-effectively. By spreading reduced payments over time, companies can avoid the burdens of ownership and asset disposal. However, what starts as a commercially appealing proposition can become painfully expensive when complex terms and conditions lead customers to pay more than anticipated.
In a recent blog post, Australasian-based sustainable equipment financer Quadrent shared feedback from customers’ less-than-ideal experiences before partnering with them. Here are the top concerns customers identified:
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Notice of approaching lease expiry: Ensure your leasing company is required to notify you well in advance of an upcoming lease expiry. This allows you to arrange for an orderly return or refresh of the equipment, preventing continued payments past the expiry date if you intend to return the equipment.
Holdover clauses: Be cautious of leasing companies that automatically roll over or extend the lease term if you haven’t notified them of your intent to return the equipment. This could result in extended payments for up to an additional 12 months.
Return logistics: Verify that the leasing company clearly outlines and facilitates the return process to avoid late return penalty fees. The equipment should be returned to a local capital city, not a distant location, to simplify logistics and minimize costs.
Fair wear and tear: Watch for clauses that demand the equipment be returned in “like new” or “near new” condition, or in the original packaging. Ensure that your lessor accepts reasonable wear and tear for typical corporate use to avoid unexpected end-of-term penalty fees.
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By GlobalDataA strong lessor-customer relationship is built on trust and transparency, and technology plays a crucial role in achieving this. By using advanced leasing platforms and digital tools, lessors can provide customers with clear, real-time access to their lease terms and conditions. This transparency helps safeguard against unexpected costs and fosters a partnership that benefits both parties.
Leasing companies that prioritise transparency, proactive customer support, and a thorough understanding of contract terms are more likely to earn long-term loyalty and trust, creating a stable and rewarding partnership.
