Leasing Tips For Today’s Material Handling Operations

Mar 12, 2021
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leasing material handling equipment

When you’re leasing forklifts or other equipment, having a partner that has the flexibility to build individual programs around your unique business requirements can make a real difference to your bottom line.

When you’re leasing forklifts or other equipment, having a partner that has the flexibility to build individual programs around your unique business requirements can make a real difference to your bottom line.

With ever-increasing facility and labor costs, as well as unpredictability in the economy and growing competition, there has never been a greater need for flexible and accommodating financing programs.  If you’re considering an equipment lease, here are some things you may want to look for:

1.  A variety of options: They say cash flow is king, and finding a lease program that can accommodate your particular income situation can make all the difference.  Lease options such as step-up / step-down, seasonal payments, or single payment structures can be used creatively to put together a program that is perfect for your financial needs.  You may also want to look at extended lease terms with lower monthly payments. 

An operating lease can further reduce your payments, free up your balance sheet and enable you to upgrade equipment at the end of the lease term. These flexible programs can also help you save money at the end of your lease. If your leased equipment still has a viable life at the end of a term, you can choose to purchase outright or extend the lease for 12-24 months at a lower monthly rate.

2.  The ability to change equipment: Businesses and economic conditions can change dramatically over the course of a typical lease.  Finding a lease program that will allow you the flexibility to swap out pieces of equipment during a lease can mean the difference between being burdened with unnecessary trucks or having exactly what you need at all times. 

3.  Consolidated invoicing: With many fleet operations, invoicing and payments can become complicated with the addition of batteries, chargers, attachments, maintenance programs, management systems and other options.  Multiply that by several locations across the country and you’ll give your accounting department nightmares. When your leasing company can consolidate invoicing and payments to single source, it can save untold administrative time and effort and keep you focused on more important tasks.

4.  Easy lease returns: Returning your equipment at the end of your lease term shouldn’t be a frustrating and costly endeavor, yet many third party leasing companies make it extremely painful.  When you deal with OEM lease programs, you’re generally working with the company that has maintained your fleet and has far better insight into your equipment condition and business requirements versus a third party.