Helping Cap and Reduce Equipment Lease Expenditures
Equipment leasing is a one-trillion dollar industry. Is your company unwittingly contributing to this growth without getting the commensurate value from your equipment leasing transactions? And how are you capping the financial exposure created by the terms of your equipment leases to effectively manage costs?
Equipment Lease Cost Reduction Services
LPRS works with organizations like yours to examine your current equipment lease landscape and identify opportunities to mitigate risk and manage costs.
Comprehensive financial and risk-rate analyses drive all of our services. While each client’s needs are unique, our consistent approach produces results across industries.
First we collect your master lease documents and lease schedules, including your executed certificates of acceptance and invoices, as well as buyout proposals, equipment return information, and lease extension, renewal, or roll materials.
Using our proprietary methodology, we evaluate your master lease agreement risk. Most lease agreements contain 15 to 25 key terms and conditions that can increase risk and cost, including the definition of fair market value and interim rent, default and default remedies, and return requirements. We then assign a risk rating to each criteria and build the analysis of your equipment lease program.
Next we analyze all the information we have amassed and get a reasonably precise estimate of the cost of your equipment leases over the life of your lessor relationships.
Next steps can include requesting definition of the agreements including deposits and extensions, fair market value buyouts, and other end of lease costs.
Equipment lease financial risks are not driven by rate but by lease contract terms. These contract terms provide leasing companies with leverage over the lease lifecycle.
We deliver results in a format which helps you understand how the language in your equipment lease agreements can affect your organization’s financial, administrative, and operational performance.
Once we have identified the true cost of your equipment lease program, we start to work on rectifying the issues we uncovered. The results of the analysis are the catalyst for negotiations with the lessor to reduce costs.