Things to Consider When Comparing Rates
Number of advance payments
Be sure that the advance rental payments are being applied directly to the lease term, so that remaining lease term is net of the advance rentals.
Are the payments being applied to the term?
If upfront costs are being taken as a "security deposit" those funds will be returned at the end of the lease term upon request. Be sure to request the return of this "deposit" at the end of the term, and follow up for receipt.
Do they charge interim rent?
Be sure that you will not be charged for "interim rent". Interim rent is when you are charged from the delivery/acceptance date for use of the equipment until such time as your 1st payment is due. This can dramatically increase your interest rate.
Is the payment in your lease quote set or is it based on a Rate Index?
Your monthly payment should be fixed to the proposal/quote that is provided. Do not accept basing a payment on fluctuating rate indexes which could increase your payment amount at time of funding.
What is the purchase option?
The Purchase Option/Agreement should be included for signature with the lease documents. The option/agreement should be a separate document that specifically states the dollar amount due at the end of the lease term.
Automatic renewal clauses
Be wary of automatic renewal clauses which allow companies to renew your lease for an additional year, without your permission, should you miss the notification deadline as to whether you intend to pay the purchase option amount or return the equipment.
It is important to get everything in writing, and make sure to retain copies of your signed documents for the term of the lease.
Secure terms in writing, be sure to discuss vital points with providers, and obtain a sense of comfort with your financing partner.