Sponsored Content provided by Drew Smith - Director of Communications, Copiers Plus
If you have been involved with a lease agreement involving a copier, you have probably heard the term buyout. Or maybe you are a sports fan and have heard of teams buying out contracts of players. Regardless of your familiarity with the term, understanding how a buyout works and the options available to you when they are in play is important to ensuring you have a copier contract that avoids unexpected charges and penalties.
A buyout, put simply, is the dollar amount a lessee owes to settle an obligation to the lessor regarding an asset that was leased. Many times a lease is administered through a third party leasing company and the service is performed by a vendor. To form a lease agreement a vendor will request an approval for a company at a certain dollar amount and term, then the leasing company will either provide an approved lease rate, request additional information such as a personal guarantee, or will decline the financing outright.