Part One: The Letter of Intent
A ‘Letter of Intent’ is the written declaration that you no longer wish to continue with your current lease agreement.
It could be that your machine is no longer compatible with your current software or that you need a faster, more efficient machine or it could even be that you have the opportunity to save money with a machine that is better suited for your needs. Whatever the reason you no longer wish to continue with your lease it is important that you create this letter in order to let the leasing company know that you are taking steps to return the machine.
Every leasing company requires this letter to be submitted by mail or by email during a very specific time frame. Your LOI window could be anywhere from 30 days before the end of lease date to anywhere between 60 and 120 days. Each lease is unique so ALWAYS be sure to review the ‘End of Lease’ section of your lease prior to signing any official documentation.
So what happens if you miss the LOI window? Well, once that time has passed then the leasing company will automatically renew your lease agreement. This renewal could be anywhere from 30 days to an entire YEAR! This also means that, if you have no other choice than to close the lease due to business closure or other reasons, you might be stuck paying off another 12 months’ worth of lease payments plus additional property taxes.
At Capital Office Products we know that you have a lot more to do than to worry about something that won’t happen for years down the road. Our company handles all of the aspects of the end of lease process for both current and prospective customers. With more than 20 years of experience we have learned the ins and outs of the ever changing lease process to create a smooth and stress free transition toward getting a new machine.
Looking for more information on what else you need to know in order to return your machine? Check back next week for part two: The Condition of your Equipment.