Ten Ways to Save a Bundle on Your Next Lease

March 13th, 2023 by dayat No comments »

According to the Equipment Leasing Association (“ELA”),Guest Posting U.S. businesses lease every thing from laptop computers to commercial airplanes, racking up more than $ 200 billion in equipment leased each year. Although four out of five U.S. companies use leasing to acquire equipment, many don’t know the ins and outs of leasing well enough to negotiate a good deal. By focusing on a few key aspects of the lease transaction, you can save a bundle on your next lease and eliminate potential aggravation.

1. Choose the Right Leasing Partner

The starting point for saving money on your lease is to select the right leasing company. The biggest savings in this area come from saving time and dodging substandard lease transactions. The wrong lessor choice can result in a slow approval, inability of the lessor to deliver, hidden fees, a poorly designed lease transaction or worst. Give this aspect of obtaining a lease your highest priority. To save a bundle on your next lease, you must do your homework in pre-qualifying bidding leasing companies. Look for lessors with: 1) experience and knowledge; 2) good reputations; 3) the ability to perform; 4) helpful business contacts; and 6) a relationship approach. Ask for and get lessor financial information, background information on the key managers, a listing of recently completed leases, and contacts at key funding sources for each leasing company being considered. Review this information and follow up with all contacts provided.

2. Choose the Right Lease
You can rake in big savings by obtaining the right lease for the equipment you are acquiring. When planning your lease financing, determine the top three or four attributes your lease should have. During this process, carefully evaluate the importance of: lease pricing, lease flexibility, balance sheet considerations, equipment obsolescence, the anticipated period of equipment usage, and your firm’s credit status. The wrong lease choice can be costly.

Lease pricing is market driven, so get at least three lease bids. Carefully evaluate bids by doing a comparative analysis of discounted cash flows incorporating all anticipated costs and fees. Make sure your lease has favorable end-of-lease options, a reasonable end-of-lease notice period, the ability to relocate equipment by notifying the lessor, the right to terminate the lease early without an onerous charge, and the right to assign the lease to another user under agreed upon conditions. Look for an arrangement that will cover equipment needs for at least the next six to twelve months.

Big savings can be realized by knowing when to select a lease with a bargain purchase option versus a fair market value option. If you know you will be keeping the equipment beyond the initial lease term, a bargain purchase option is usually the most cost-effective alternative. If the equipment is prone to obsolescence or if it is unlikely you will retain the equipment at the end of the lease, consider a lease with fair market value, end-of-lease options.

Know your firm’s credit standing. If your firm has been in business for a number of years, is profitable, has a good track record and has a strong balance sheet, it deserves great lease pricing and terms. If your firm has a spotty credit record or weak balance sheet, the challenge is to get the best deal possible. Identify and offer credit enhancements that will make your transaction more attractive. Allow plenty of time to get through the credit review and due diligence process.

3. Ask for Fair Market Value ‘Caps’

If you decide that a fair market value lease is the way to go, you can realize big savings by limiting that value. Fair market value rental and purchase options at the end of the lease allow the lessee to either continue leasing the equipment or to buy the equipment at the then fair market value. These values are generally quoted by the lessor at lease end based on aftermarket data, but most leases allow the lessee to obtain an appraisal from a qualified equipment appraiser. To realize significant savings and to eliminate unpleasant surprises, request fair market value options that are “capped” (have upper limits). Beware, however. Lessors may insist on fair market value ‘floors’ (lower limits) when they agree to ‘caps’. The availability of a fair market value cap will depend on the size of the transaction (may not be available on small transactions), competition among lessors, and the credit status of your firm.

4. Keep the End-of-lease Notice and Renewal Periods Short

To avoid hefty unintended lease charges, seek notice and automatic renewal periods that are short. The primary purpose of the end-of-lease notice period is to allow the leasing company sufficient time to redeploy the equipment if you elect to return the equipment. The secondary purpose is to notify the lessor of your plan to either continue leasing the equipment or to purchase it. The notice period generally ranges from one to six months, with three months being typical. If you violate the notice period, the lease kicks into an often unfavorable automatic renewal period, usually one to six months. If the lessor is unwilling to negotiate this provision, you can save money by making sure the notice requirement is fulfilled within the allowed time.

5. Slash Interim Rent

You can slash lease costs significantly by limiting interim rent. Interim rent is the rent you pay for daily use of equipment between the equipment acceptance and lease start dates. The rationale for interim rent is that you have use of the equipment and the lessor is obligated to pay the equipment vendor during this period. While the rationale is not unreasonable, interim rent can balloon lease pricing by arbitrarily extending the term of the lease (albeit by only days). The best approach is to schedule equipment delivery and acceptance toward the end of the month. Most lease terms officially start the first day of the month following equipment acceptance. Another strategy is to negotiate a truncated period at the end of the lease such that the interim period and truncated period total one month of the quoted lease term. A last strategy is to request a limit on interim rent (perhaps ten or fifteen days) regardless of equipment acceptance.

6. Manage Equipment Returns

Save a bundle on your lease by managing the equipment’s return. Although you may not anticipate returning the equipment to the leasing company at lease end, it can be costly if you do. When equipment is returned, most lessors care about and will hold your firm accountable for the equipment’s condition. Equipment should be properly maintained and returned in good condition. Make sure that you understand the return provision of the lease and that you have good internal controls to adhere to these requirements. If the lease contains an ‘all or none’ return provision, one strategy is to subdivide the lease into several smaller lease schedules on the front end. Place equipment you are most likely to keep on the same schedules. Try to negotiate the right to return up to 20% of the equipment (based on original value) at the end of the lease, as long as you agree to renew the lease or purchase the balance of the equipment. Track and save all equipment accessories and documentation.

7. Match Lease Term with Projected Equipment Use

7 Best Kitchen Equipment Manufacturers and Suppliers in UAE

May 13th, 2022 by dayat No comments »

ATNInfo caters to the requirements of the clients by providing them relevant data on the existing business in Dubai. They are continuously involved in the process of updating their database, which further helps them in understanding what needs to be delivered to their visitors.

Kitchen equipment refers to the tools that are used for various processes such as freezing,Guest Posting cooking, blending, and baking. They are indispensable for establishments like restaurants, hotels, bakeries, catering services, etc., and are therefore very much in demand. There are many world-class suppliers of kitchen equipment in the UAE who cater to the growing needs of the food and beverage industry.

To make your process of selection more comfortable, we have provided a list of the 7 top kitchen equipment suppliers mentioned on ATNINFO which is Dubai’s top directory:

Chefs Choice Kitchen Equipment Trading LLC
Chefs Choice Kitchen Equipment Trading LLC is involved with supply and installation of commercial kitchen equipment, and, is the preferred choice for clients such as hotels, restaurants, and bakeries in Dubai. They deal with all types of kitchen equipment, such as refrigeration and cold storage equipment, cooking equipment, etc. Their experienced product consultants discuss with the clients to find precisely their requirements and then supply the best possible equipment to them. They offer the products at the lowest prices after bargaining with the manufacturers. The company supplies everything you need for setting up your kitchen or upgrading it and also provides excellent after-sales support. The firm has around 25 years of experience and supplies only the best quality durable products.

Al Ahlia Kitchen Equipment Trading
This trading company is optimizing kitchen of restaurants and café. They trade commercial equipment which finds wide application in the kitchens. They are innovating in creating a full-fledged kitchen in a small space. Their supplies include kitchen hood, work table, pizza dough rollers, table refrigerator, upright freezer, wall cabinet, dishwasher and a few more on the list. They assist in the installation of the equipment and actively participate whenever you require service on the machinery.

Al Laywan Kitchens and Restaurant Equipment Tr. LLC
Al Laywan Kitchens and Restaurant Equipment Tr. LLC supplies and installs kitchen equipment, and also takes care of their maintenance. They deal with a wide range of food and beverage process equipment, along with other related services in the UAE. The company is reputed for its top-quality products, which are supplied at very affordable rates, and it believes in giving the customers valuable and efficient service.

Al Quresh Kitchen Equipment Trading Company LLC
A top-rated company, Al Quresh Kitchen Equipment Trading Company LLC, has been supplying all types of kitchen equipment to clients in the UAE. The company’s vision is to deliver products of high quality and the best value to its customers to ensure their total satisfaction. Their products include cooking equipment, hot cabins, microwave ovens, dishwasher, etc. Their efficient team tries their best to ensure that their equipment is reliable and durable, besides being safe for the environment.

Al Taj Kitchen industries LLC
Founded in 2014, Al Taj Kitchen industries LLC deals with sales and rental service of hospitality equipment to various clients in the Middle East, UAE, and Asia. The company supplies foodservice equipment along with spare parts of reputed brands of the US and Europe. The vision of the company is to help its customers to expand their business. Some of the famous brands supplied by them include KROMO, COMENDA, BERTAS, SANTOS, and TECNODOM. Their team of trained sales personnel and engineers also offer efficient customer service and provide them with all necessary spare parts, as and when required.

AVS Trading LLC
AVS Trading LLC delivers a wide range of commercial kitchen equipment to clients like bakeries and hotels in the UAE. Their knowledgeable team possesses all the proper installation and maintenance skills required and provides to its customers, kitchens that are ready for use. Their after-sales service is perfect, and they also offer maintenance contracts ensuring that the equipment has a long lifespan. They deal with all the reputed brands in the industry, such as Santos, Scotsman, Fagor, Williams, and Fregor.

Complete Kitchen Solutions FZE
Complete Kitchen Solutions FZE is one of the best manufacturers and suppliers of kitchen equipment, which caters to various customers in the Middle East and India. Their clients include food courts, restaurants, hotels, oil companies, and hospitals. The products supplied include tandoor ovens, cooking stations, hoods, and many others. The famous brands they deal with are Scotsman, Salva, Valko, Vitamix, and others. Their s