Equipment Leasing Arrangements
What to settle
| Term | Question to answer |
|---|---|
| Start of term | Delivery or acceptance |
| Maintenance | Who pays for service and spares |
| Usage limits | Shifts, cycles and load constraints |
| Damage | Standard for fair wear and tear |
| Exit | Return, buy-out or upgrade at the end |
When leasing wins
Leasing suits measurable, stable output with uncertain long-term demand. It is less attractive where the equipment will be modified, or where the technology will be superseded inside the term and the exit terms are expensive.