Leasing Horror Stories: The Never-ending Lease Agreement
Despite our best intentions, things do not always go to plan and even industry professionals make mistakes.
In this series of blogs, Innervision takes a look at some of the worst examples of leasing that even the global market-leading companies have fallen victim to and the steps to take to avoid repeating them.
Here is the story of The Never-Ending Lease:
These stories are based on true events and although the company names have been removed for their protection, the horror remains just as real.
Years passed and the assets grew old. Aging with dust and weary from years of committed service; time had taken its toll and they were no longer as shiny and new as when the lease started, yet the deal was never changed.
Other companies in the kingdom had been more vigilant and altered their deals as their assets aged: Some would let the old tech retire peacefully, opting for upgrades to fill in the gap. Others got discounts on the aged equipment, respecting that it was no longer as young and nimble as when the lease started.
This company, however, did nothing.
All hope seemed lost, until they sought out a knight in shining armour – INNERVISION.
One of the best features of a lease agreement is the multitude of options available at the end of the lease term. However, many companies miss out on this benefit as their leases never seem to finish. It is up to you to keep track of your leases and cancel or rearrange terms when necessary. If not, they may automatically continue, wasting your company's money, until someone notices. Although this may sound simple enough, when you have large numbers of leased assets and outgoing funds on top of the ever shrinking hours in the day we seem to have, it can be very easy for assets and payment agreements to slip under the radar.
Often it is the less obvious, office based items, like vending machines and photocopiers, which get forgotten about, blending in as part of the office furniture. The “old scanner” that’s “always been like that” could potentially be draining the company wallet, whilst you are owed an upgrade.
Although it is unlikely that you will experience a situation as dire as the one described above, it is not unusual for many well respected global businesses to suffer from poor lease management. Here are some tips to make sure that your company doesn’t become the star of a similar leasing horror story:
- Keep your leases organised in a portfolio system – Holding your leases together in one place is a great way to ensure that you know exactly what you are leasing and what agreements you have signed up to. This will save you a great deal of time and money in the long run. A lease agreement is no good to you if stored in a mass of other papers.
- Track you lease payment plans regularly – Not only is it important to know what equipment you are leasing, it is also a good idea to keep on track of how long you have had it and how much you are paying. As important as it is to have your agreements organised, you also need to make sure you are aware of when and where your money is going.
- Consider your end of lease plan for you assets – Failing to prepare means preparing to fail. Without a clear plan on what you are going to do with your assets when the lease runs out or they have outdone their usefulness, you are much more vulnerable to a never-ending lease scenario. Be sure to plan ahead and avoid any needless lease extensions.
- Know your commitments – By knowing what exactly is required of you, you place yourself in a much better position to keep control of your assets and lease payments. This way you can avoid unnecessary payments and problems whilst ensure you reap all the additional benefits that leasing offers.
Want to know if your company is starring in its own leasing horror story without you even realising? Organise a pilot with Innervision today and see just how much we can help with your company’s leasing habits.
Many companies trust Innervision to manage their lease portfolios, using our expert advice and specialist knowledge to ensure that they get the best deal and the most out of their leases. Innervision prides itself on our dedication towards cutting down costs and time spent on the often tedious, yet neglected processes of leasing, aiming to truly harness the value of your company’s asset procurement.