Accessibility links

You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.

Leasing equipment

Checklist for what to consider when leasing.

  1. Resources
  2. Your business
  3. Developing your business
  4. General

At Shirley Smith & Co we can provide businesses in the Chelmsford area with advice and support on a wide range of business issues. This article includes information on leasing equipment.

Leasing equipment rather than buying it can often be better for your bottom line, but it is important to read the fine print and weigh up all the factors before signing anything.

Above all, shop around and compare deals.

Below is a checklist of the most important factors to consider.

Print
  Tick
Is the initial term of the lease and the amount and timing of rental payments clear?  
Do the terms of the lease provide an option for renewal and if so on what terms?  
Are you allowed to sublease the equipment?  
Who is responsible for maintaining the equipment? Will your maintenance costs be higher or lower than if you owned it?  
Are you allowed to make any modifications to the equipment?  
Who is responsible for ensuring the equipment conforms to any existing or future regulations it might be subject to?  
What happens if the equipment is lost, stolen, damaged, or destroyed? Does the lease specify what liability if any you would incur?  
Who is responsible for insuring the equipment? To whom would any claims be paid?  
Can you change the lease if your circumstances change?  
Do the terms of the lease include a right to purchase, and if so on what terms?  
Does the lease allow for premature termination, and if so in what circumstances? What penalties, if any, does premature termination incur?  
What costs will be incurred at the termination of the lease, and how much of this will you have to cover?  

This list is by no means comprehensive. There are many other potential pitfalls with leases such as warranty issues, regulatory requirements, taxes, license fees, and public liability.

If you are in the Chelmsford area and are looking for support and help from experienced accountants and business advisers, contact Shirley Smith & Co.

Latest News

19 Jun 2026

Tax system doesn't support entrepreneurs, MPs warn

Over 90 MPs have warned Chancellor Rachel Reeves that the UK tax system doesn't support Britain's entrepreneurs.

18 Jun 2026

Financial losses from scams hit £1.3 billion a year

Cases of fraud in the UK have surged, with almost £1.3 billion stolen by scammers in 2025, according to UK Finance.

17 Jun 2026

UK inflation rate remains at 2.8%

The UK's inflation rate remains at 2.8% in the year to May, according to the latest data from the Office for National Statistics (ONS).
xero.png xero