5 things you need to know about Equipment Leasing
- Many businesses lease equipment, from smaller items such as photocopiers, to expensive and complex products such as cranes and earth movers. Equipment leasing is a specialist legal area, so it’s important to work with a lawyer with expertise in the field.
- There are two main forms of equipment leasing arrangements; standard lease and hire/purchase. A standard lease arrangement enables the lessee to lease the equipment for a set period of time before returning it. A hire/ purchase arrangement either requires, or gives the lessee the opportunity, to purchase the equipment at the term of the lease.
- One of the most important issues when leasing equipment is determining which party will be liable to pay for damages to the equipment. It’s vital that the clause relating to repairs is drafted in a way which makes it absolutely clear which party is responsible. That party will then usually purchase insurance to manage the risk.
- An equipment lease is a security interest that, in most circumstances, should be registered with the federal government’s Personal Property Securities Register (PPSR). This ensures that your interest, as lessor, over the equipment is registered with the relevant government institution.
- A leasing lawyer will help you understand if your lease covers all the areas that should be addressed or whether there are important gaps to be addressed. A leasing lawyer will also advise you on whether the terms are market standard or unusual and unfair.
Commercial Law, Contract Law, Information Technology And Online Law, Intellectual Property, Capital Raising LawExperience:
Bank of America Merrill Lynch, Baker & McKenzie, Hogben Group
Asset Leasing, Business Structuring/Start Ups, Employee Share Options Plans, Loans (Secured, Unsecured And Convertible), Online LawExperience:
Clayton Utz (Sydney), Herbert Smith Freehills (Sydney), Norton Rose Fulbright (London, Paris, Amsterdam and Hong Kong)
Business And Commercial, Contracts, Dispute Resolution And LitigationExperience:
Norton Rose, Australian Business Lawyers & Advisors, LOGOS Legal Services (London), DibbsBarker