Leasing business equipment has become popular with anything from copiers to franking machines ove the recent years. Leasing of computers and increasingly Apple Mac’s is very popular.
But many busineess people are put off by ‘hidden’ costs and charges. Make sure you ask if there is a deposit ? Ask how many payments you will make- a three year lease could have 39 monthly payments . Ask what happens at the end of the lease period- can you own it for a nominal figure or does it just get returned. Ask if its a fixed term agreement or do you have to cancel it. There can be a three month cancellation clause which can be avoided just by asking the right questions or speaking to a reputable finance provider.
Compared to bank loans and finance its quite transparent though. Its quite common for a bank to charge a setup fee equivalent to 5% of the loan and often a Charge on a property is required for security purposes. This would mean seeking solicitors advice therefore incurring a further hidden cost.