A growing business trend in the market today is the leasing of business equipment verses buying it from a vendor. Rapidly changing technology has made leasing a popular option. However, it is important to approach entering a lease agreement with a keen business sense to ensure your campus or department gets the best price and interest rate possible.

Please find below a list of helpful tips to consider when entering into a lease agreement:

•  Is the length of the lease on par with projected technical changes for the leased equipment? For example, computer equipment technology changes rapidly. Is the length of the lease longer than the useful life of the equipment?

•  Is the stated or implicit interest rate equal to the market rate? For example, if the vendor is offering a 15% interest rate and the Prime Rate is 8%, perhaps leasing is not a good option. It is important to determine up front if leasing will cost more than buying the equipment.