Additive Manufacturing Equipment Financing
Extending Leases and Upgrading Equipment
What you might do at the end of a lease effects how you structure the lease from inception. It is wise to consider what might happen if, during the course of a lease, you realize that you may want to change the lease terms or alter the leased equipment.
A lease agreement with NCP is based on a fixed commitment of time and money in relationship to a completely specified asset. Traditional end-of-lease options include purchasing the equipment for fair market value, continuing to lease the equipment for fair rental value or returning the equipment to the lessor. Those three basic outcomes for a lease that runs as planned are the norm. There are, from time to time, exceptions.
You may decide during the term of a lease to extend the agreement. The result will be extending your commitment to make lease payments, but each payment will be smaller. This frees up budget money for other potential financial opportunities.
During the course of a lease the vendor may announce an upgrade that would greatly enhance your equipment or your business requirements may change in ways that make the equipment less appropriate. In either case you may wish to upgrade your equipment or trade it in for a different model. Whether this is possible or practical depends on the specifics of your situation.
Changes in leases can add to your costs. Although NCP does not charge re-documentation fees, there are often vendor-associated expenses to consider.
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Cincinnati, Ohio 45202