There are people who own a business of equipment renting. It could be very challenging for the provider (equipment owner, typically or commercially known as the vendor) which is why they go for an equipment lease agreement to keep track of every transaction.
On the other hand, the person who is borrowing the item on rent will prefer having a signed agreement to keep everything official. In case of any dispute, they can produce the equipment rental contract and get the issue resolved.
If you are not aware of what an equipment rental agreement is then we will discuss the same in the following section. We will also help you to understand how easily you can create one.
What Is an Equipment Rental Agreement?
The businessman of equipment renting keeps a track of every transaction with the help of an equipment rental form. It serves as a legal total equipment rental document that has the terms, obligations and responsibilities of the owner as well as the renter for renting the equipment.
It contains necessary details, terms and conditions of renting the equipment. Let's know about the equipment lease agreement from a bit closer view.
An equipment lease agreement or equipment rental contract can be defined as a contract that is made between two parties. It is made concerning the use of some specific type of equipment for a particular period of time.
The owner of the equipment is known as the lessor and the person borrowing the equipment on rent is called a lessee. That's how they are termed on a rent-back agreement form.
Once both the parties agree on the terms and conditions, they sign on the equipment lease agreement template in word or PDF format, which can be done with free online PDF editors like CocoDoc. In the case of short term equipment renting, a short term equipment rental agreement is made in which the lessee has the choice to renew, terminate or purchase the rented equipment.
Why Do Companies Enter Into an Equipment Lease Agreement?
There are organisations that need the use of the equipment at a certain point in time. It is impossible to have all the equipment in-house, especially for small businesses.
Buying new equipment can lead to an instant cash crunch which they cannot afford. Even they might not go for a loan from the bank due to various reasons such as approval issues, overburdening, etc.
In this case, the companies prefer choosing to enter into an equipment lease agreement where they can take the advantage of the equipment and use it as per their need at a lower monthly/ quarterly/ yearly rent.
It also saves a lot of money for businesses. Choosing to get into a short term equipment rental agreement helps the businesses indulge their capital flow and get their hands into the latest technologies at affordable rates.
Types of Equipment Lease Agreements
If you are looking forward to downloading an equipment rental agreement form or an equipment rental agreement template, then let us introduce you to the types of equipment lease agreements available online.
They are basically two types.
Capital lease
The first one is known as a capital lease. These leases cannot be cancelled and are made for a longer period of time. Businesses and companies prefer using free equipment rental agreement form templates to make the use of equipment for a longer period of time.
They can also buy particular equipment at the end of the agreement. Businesses choose to go for this type of lease because they believe that they might have a budget to buy it.
Operating lease
An operating lease is basically a short term equipment rental agreement. In this lease, the company has the power to cancel the rental agreement before the expiration date of the lease.
The business that looks forward to using the equipment for a given time period only goes for this lease. In this lease, the provider of the equipment has to rent his equipment as long as the business needs it.
These are the types of the lease that the companies prefer dealing with. We hope now you have got the idea of how to create an equipment lease agreement template in word on your own.
How to Use an Equipment Lease Agreement?
The equipment lease agreement can be used by any individual or a business whenever he needs to give any of his equipment on rent. The lease agreement appliance clause should include all the essential details of the lessor as well as the lessee.
It can be done when both the parties are present or a lessor can do it himself and then give the equipment rental form to the lessee to check.
When both the parties agree to the terms and conditions mentioned in the total equipment rental agreement then they both will sign it. In case if anyone disagrees then the simple equipment lease agreement needs to be modified accordingly.
Once the document has been finalized and signed, the lessor will provide a copy of it to the lessee and both of them need to keep the copies safe with them as a record. The use of an equipment lease agreement should be mutual to avoid future conflicts.
How to Get out of an Equipment Lease Agreement?
Many times, businesses do not feel like being in the equipment lease agreement and want to get out of it, just like they would with the rental property lease agreement. We will tell you the ways by which you can end your party rental contract template and get out of it easily.
So let's know about it in the following.
- The first thing you can do is read the equipment rental agreement carefully and find out any mentions that can help you to get out of it.
- Try to search for sentences like "in case " or " in the event of " and others that will give you an opportunity to escape the lease agreement appliance clause.
- Try to know about the laws of your state regarding the total equipment rental schemes. You can ask someone who is experienced in this matter or search on the internet about it. Asking a lawyer will also help because they know exactly what to do.
- You can also inform the lessor that you do not want to stay in the equipment lease agreement anymore and want to get out of it. Also, show some proofs that will support your decision and discuss with the lessor.
If you wish to get a trailer lease agreement or rent to own welding machines then you can check out on the internet and talk with your lessor. You can create an equipment rental agreement on your own or simply download the free equipment rental agreement form template from the internet.
