There are quite a lot of financial agreements out there in the market, I wanted to talk to you about financial agreements concerned with the buying of assets for the business.
Please double check the small print before signing any financial agreement,
we have seen occasions that the finance company has contacted clients with confirmation that their contract has come to an end. The client thinks that the agreement will naturally cease.
Surprisingly because the finance company has had no contact from the client, even though the client effectively owned the equipment. They have then been put onto a rolling rental contract. Facing extra charges.
Then upon cancelling the agreement as soon as this has been discovered have to give 3 months notice and cant do a thing about it, mainly because it was in the small print clause of the agreement.
This information is not meant to scare you into not signing up for financial agreements, but please look at them with your eyes wide open. These companies have put their top solicitors putting their agreements together quite often they confuse people.
Another one to be wary of is confirming that you are signing a purchase agreement and not just a rental agreement.
Rental agreements are open ended for as long as you have the asset in your possession, they can also carry notice periods for closing the agreement.
Interest, we are seeing agreements around the 6-7% but we are also seeing them for
12-15% interest. Negotiate the best deal you can with these or this could be costing you a lot of money.
Shop around, don’t take the first offer that’s put your way, a little research can help a lot.
This blog is intended for information purposes only and is only advice from past experience, you may have other suggestions of your own. It is not intended to be used to make all of your business decisions but as a guide only.
