FAQ Answer About: Equipment-Leasing
  • What happens at the end of the lease period?

The simple answer to this question depends on the leasing arrangement agreed at the start of the lease.

If you agreed to a Finance Lease (Lease Purchase, Hire Purchase) then the equipment is transferred to your ownership for a nominal "change of title" fee. The alternative is that you can agree to continue using the equipment for an annual peppercorn rent that normally equates to a one month rental payment or the equipment can be sold and any cash raised shared.

Leasing via an "operating lease" means ownership will always remain with the lender.

Discuss your choices with the leasing lender at least one month before the term expires.

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