10 Tips to Renegotiate and Restructure Equipment Leases and Loans

If your business cash flow is car modifications tight and you need some breathing space, consider restructuring your equipment leases and loans. You can always deal with your current lease agreement. The biggest reason for the leasing company will not modify the duration of the contract, it is because they are asked to make changes. If you do not ask, do not understand.

Here are 10 tips to renegotiate your equipment leases and loans.

1st Call the leasing company if you are behind in payments. Keep communication lines open.

2nd Avoid late payment penalties. May be as high as 10% of lease payments. Are delivered quickly and cumulative.

3rd Negotiate a late payment penalty, if assessed. Sometimes leasing companies will forgive them if the request as late payment is not standard practice throughout the lease term.

Four. Be active, not reactive, in the restructuring process. They have a plan. Make sure that the financial statements and tax returns are prepared to support your refinance application. Lenders will want to see your latest year-end tax returns and current interim statement of the comparative period for the performance of the previous year.

5th The restructuring of payment options. Options may include reducing the fees that will add months to the end of term financing. Term support for information on equipment life.

6th Propose an interest-only payment option for a few months to get through the narrow term cash flow.

7th Manager deals with the lending company or bank officials. Customer service people are instructed to say: "We can not restructure the lease."

8th Know your options contracts. That means read the actual lease document from beginning to end. If pages are missing, ask that he be sent to you.

9th I understand what you gave her a lease default. Often the initial plan to lease means all leases with similar financial institutions will go into default even though they are paid on time. Understand that a lease default is very costly.

10th Refinancing a structure, usually come in payments. Payments should be less than one-half percent of the total cost of acquiring equipment.