Heavy machinery that is indispensable for the daily operations of every industry or company is included under the industrial equipment. They carry higher price tags as they are special in their nature. It is through industrial equipment finance is how such expensive equipment is acquired provided with a few of the genuine financing companies.
An equipment lease deed is a legally binding contractual agreement between the owner of the equipment, who is referred to as the lessor, and the person who will be using the equipment for a defined time period referred to as the lessee.The usage will be in exchange for periodic payments which will be specified on the lease deed.
The ownership of the equipment, however, remains with the lessor and the equipment lease deed can be canceled on various conditions such as usage of equipment to indulge in illegal activity.Essential Components of Equipment Lease DeedHere are the contents of the equipment lease deed:Period: The duration of the deed should be specifically mentioned.
The lease deed specifies the day of the month on which the payment should be made, in case the payment has to be made monthly, which is usually the case.
In addition, the lease deed also specifies the late fee, interest, or any other form of penalty which must be paid in case the payment is not made on a regular basis.Warranties and Repairs: Warranties and repairs are an important part of a deed.
It should be explicitly stated whether the lessee or the lessor will be responsible for the fitness and repair of the equipment.
Further, it must also be clearly mentioned that the equipment must be returned in the original condition when the period of deed is over.