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Are you taking risks when leasing office equipment?

Jan 8, 2014 6:10:45 AM / by

Leasing is a popular method for financing office equipment.  But are you aware of possible dangers that come with lease agreements?

negotiateThe vast majority of technology companies, even the largest brand-name suppliers, use a third-party finance company for leasing.  The two major reasons are:

  1. They get paid up-front.  That’s right, the entire amount financed is paid directly to the technology provider in one lump sum.  That’s a mighty good payoff for them.
  2. They reduce their risk of doing business with your company.

As you can see, both of these reasons lowers risk for the company providing technology to your business.  But there are still significant risks to your company utilizing a third-party leasing company.  The risks include:

  • No equipment guarantee.  If your equipment does not meet the needs of your organization, the finance company doesn’t care.
  • Restrictive terms & conditions and virtually no opportunity to negotiate terms to better suit your company.
  • Costly upgrade provisions and hidden end-of-term costs.
  • Your lease can be automatically renewed without your knowledge!

Most importantly, your equipment provider and the third-party leasing company control your account, not you.  Your service provider and third-party leasing company limit the information they can provide you.  They control all aspects of the “deal."Phillips-Capital-logo

At Phillips, we don’t subscribe to the above practices.  Our Phillips Capital division is wholly-owned and operated by Phillips Office Solutions.  With Phillips Capital you’ll always have:

  1. Lower risk, because Phillips Capital guarantees the equipment performance.
  2. Friendlier terms & conditions – even negotiable in some cases.
  3. Low aggressive rate factor, lower cost of financing.
  4. No penalty upgrade feature.
  5. One point of contact for billing, service & leasing.

At Phillips we believe there is a better way to conduct business.  A way that fair for both of us.

- submitted by Glen Dellinger  |  @GlenDellinger

Topics: copier leasing, Document Management, equipment guarantee, Healthcare, in-house copier financing, MFP leasing, Phillips Capital, third party leasing, Tips and Resources

Phillips Office Solutions

Written by Phillips Office Solutions

Articles written under this account are submitted by various employees from Phillips Office Solutions. Each author's name can be found at the end of each post.

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