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Today’s topic is an introduction to series on the topic of Equipment Leasing. To view blog as a video, click here.
I once met a consultant who was in the business of helping companies get out of bad leasing arrangements. Prior to that, he was in the equipment leasing business. He said he got out of it because he couldn’t sleep at night. And as he and I worked together to get to help a billion dollar company unwind some of their bad leases, I came to learn exactly what he was talking about.
Equipment leasing is buyer beware, liaise faire, unregulated capitalism at its worst. Don’t get me wrong, there are honest leasing companies out there who cut fair deals, and are straight up about what is going on. The good lessors are generally reputable banks and high-volume specialized equipment manufacturers whose long-term existence depends upon repeat business. But there are others out there who would figuratively eat their young, and their main objective is to get you into a leasing arrangement that bleeds the profits of your business directly into their pockets.
You don’t have to be a small business to be at risk. Some of the worst deals I’ve seen were made by large companies who had the resources to properly analyze leases before getting into them, yet for various reasons, didn’t do it.
We’ve just added a crash course on leasing to our video library that is designed to help business people avoid the pit falls of bad equipment leasing, and to give guidelines as to when leasing may be appropriate. To learn more, visit our website at www.CFOoutsource.com.