[Question] Starting an office equipment leasing company

[Amartin]

Hi guys,
I hope someone can help me. I would like to start an office equipment leasing company, where clients can rent laptops, printers, copiers etc.

I have a rough idea of how to do it, but I’m really not sure. I presume I would get financing through my bank to purchase a machine, insure it, and then lease it to a client at a price that would cover my repayment and insurance costs. Would it be possible to insert a clause into the leasing contract that stipulates that any equipment should be returned within 30 days of non-payment or it would be considered as stolen? In which case I would open a case of theft and claim from insurance?

This is all new to me, so if anyone can shed some light on the framework of such a company it would be great. I would really appreciate any information or tips.

Thanks in advance!

[eitai2001]

Hi guys,
I hope someone can help me. I would like to start an office equipment leasing company, where clients can rent laptops, printers, copiers etc.

I have a rough idea of how to do it, but I’m really not sure. I presume I would get financing through my bank to purchase a machine, insure it, and then lease it to a client at a price that would cover my repayment and insurance costs. Would it be possible to insert a clause into the leasing contract that stipulates that any equipment should be returned within 30 days of non-payment or it would be considered as stolen? In which case I would open a case of theft and claim from insurance?

This is all new to me, so if anyone can shed some light on the framework of such a company it would be great. I would really appreciate any information or tips.

Thanks in advance!

Hi.

I don't believe you can say after 30 days it is considered stolen ... insurance won't cover that, but I may be wrong ... I'm not in legal ... but it doesn't sound right ... otherwise there would be a lot of cases of theft out there instead of Black Listings for unpaid cars :P

You can open a business to do this though ... there are a few companies that do precisely this. You can get financing from the bank to purchase the equipment, although that is a bit risky in the event of non-payment because you don't have the goods.

I would suggest trying to raise equity capital. And also you need to decide which market you want to target. For short term market, you should rent out on an operating lease basis, but you'd probably be safer renting out fixed contract finance leases with fixed terms.

Regards

Itai

[Dave A]

For starters, try renting a piece of office equipment and read their contract.

WARNING: Shark infested water ahead.

Office equipment rental is full of hazards for the naive. My number one tip - make sure your best buddy is a really good lawyer.

[Amartin]

Hi guys,
Thanks for the suggestions. I appreciate it, and I will post back with any further findings!

[Macfudder]

I have a few contacts who could help with the basics and am able to assist you in setting up an insurance product that can be included in your lease to your client. Let me know if you are interested.