Peace of Mind Leasing is American Bank Leasing's cornerstone philosophy. This philosophy is designed to protect customers from unscrupulous leasing companies and unfavorable lease structures.
Peace of Mind Leasing Means:
- No unstated fees.
- No unstated purchase options.
- No automatic renewals at lease end.
- No blanket liens filed on your assets.
- No excessive interim rent charges.
- No Surprises!
Any leasing company you work with should be able to state all of the above in writing.
A Case In Point
| A regional cancer center came to us recently with a problem. Using a leasing company referred to them by their bank, this cancer center leased two MRI machines for a total investment of $3,000,000. Unfortunately, it was only after the Master Lease was signed and the equipment was ordered that the customer learned that the lease-end purchase option was "Fair Market Value". When the customer inquired about the expected buyout figure, the leasing company was vague. They informed the customer that the buyout figure could not be determined until the end of the lease. The leasing company did, however offer an estimate: somewhere between 10% and 20% of the original cost. That is a buyout of between $300,00 and $600,000! Good News, Bad NewsThe good news is that American Bank Leasing can structure a lease with a stated early buyout option - so you will know exactly what your total cost will be. The bad news: We had to inform the cancer center that they were, indeed, obligated to the current transaction insofar as they signed the documents. Moral of the StoryPlease don't count on the details to work themselves out at the end of any lease. Some leasing companies will use the Fair Market Value lease structure to their advantage — and your detriment. |
