Tweet

How To Terminate a Lease Agreement

Guest post by: Al Shea

Article Overview: This article looks at how to terminate a leasing agreement in place with your business if, for example, you have leased equipment or assets from a supplier.

How To Terminate a Lease Agreement

When you sign a lease agreement with a funder you are typically signed into that lease for the minimum term stated on the document. With most leasing agreements there is no colling off period so once you have signed the agreement and it has been activated, it generally cannot be cancelled within the normal cooling off legislation more commonly found in personal finance arrangements.

If you wish to terminate your finance agreement you will normally need to write into the funder who you have the agreement with and request a settlement amount. This amount will always vary per funder, but as a typical example the funder will normally add up all the payments due and then discount it by a certain percentage to allow for the period of time the interest element will not be used. Also bear in mind that whilst this may settle the finance agreement you may not own the title of the equipment if you have signed a lease rental. In these instances you have a choice of requesting title of the equipment for an agreed fee or returning the equipment back to the funder who still retains title.

Related Articles
  Car Leasing For You
  Negotiating Leases
  Ending the Franchise Relationship
  Franchisee checklist - the franchise agreement
  Sample Letter of Intent
  What is an Operating Lease and who uses them?
  The Difference Between A Capital Lease and An Operating Lease
  Things To Consider When Taking A Car Lease
  Negotiate Your Commercial Lease by Dale R Willerton
  What Is A Fully Maintained Car Lease
  Recent Decisions: Retail Leases
  Commercial Leasing
  Equipment Financing Specialist – Canadian Leasing Solutions
  More on the franchise agreement
  The difference between fixed term and minimum term business finance agreements
  Convenient Commitments
  10 Considerations For Equipment Leasing and Lease Financing In Canada – From Start to Buyout !
  How do Business Owners account for Capital Lease Transactions?
  The One Thing You Need To Know About Canadian Machinery Finance Equipment Lending To Make Your Lease Or Loan Work !
  Canadian Business Financing Challenges ? Let The Expert Lease Of Equpment Lending Be Your Guide!

Article Tags: assets, how to terminate a lease, lease agreement, leasing agreement



Related Forum Posts
Franchising & Licensing Can Be The Same Thing - FTC Rule 436 defines franchising as anyone offering an Agreement that contains these 3 things: 1. Licensing a "Mark" - which can be a trade name, service mark, commercial symbol, slogan, etc. 2. In the body of the Agreement, there contains, significant controls and assistance. 3. The licensee is paying the licensor in excess of $500 within the first six months of the actual offering of the business. Licensing and Franchising can mean the same thing today. If you do not decide to franchise and comply with FTC Rule 436, you may be in violation of Business Opportunity Laws that exist in 24 individual States.
I am looking for a Mentor who is a Successful Restauranteur - Hi Evans, An idea for a forum that would be niche focused. My goal is wanting to acquire the expertise of running a highly successful restaurant. Like building any great business I think it would be great if there was One Umbrella resource underwhich I could find a highly successful restauranteur who would be willing to be a Mentor for building a successful restaurant business. A lawyer who understands business and specializes in the restaurant industry and more importantly who would not charge by the hour, But instead on as per completion of a contract basis. A competent CPA/CA who specializes in restaurants and who would be able to offer the right advice in maximzing revenues within the confines of legal parameters. A competent commercial real estate agent who specializes in restaurants and who would assist and advise on acquiring the right locations and also assist in negotiating the Term of Offer Clauses in the Lease Agreement. A competent Tax professional who would advise on maximizing revenues within the confines of legal parameters.
Non-Disclosure Agreement - How should I decide who to get to sign my Non-Disclosure Agreement or not? Is it worth having? I'm worried that people won't want to help if I make them sign the NDA.
Not much idea about ITE today - Thanks, I don't know why but that's the kind of response I expected - I replied to their TV ad I saw a few weeks ago and received their info pack. I took the "Disclosure Agreement' to a patent attorney and he quickly pointed out that there was no space for their signature anywhere on the form, so I quizzed them about it and I was told that they would send me a signed DA, but I'm still waiting... I think I'll give them a miss now, in fact I've just this morning come across the Trevor Bayliss Brands site myself and sent off their DA so I'll wait and see what happens.
The best time to open a new business - I agree. It depends on the business. However, in some cases there are ways around that if you allow yourself to open up to possibilities and get creative. For example, my husband and I are in the process of beginning a sport's store. We live in a touristy community with a lot of winter sports. There are summer sports here as well, but the winter appears to be the most lucrative. We planned on things coming together in order to take advantage of the winter sport's season, but our ideal lease space was held up by circumstances beyond our control. We are still not in. Lease space is minimal so we have some decisions to make. We could either delay everything until Fall or get very creative around our marketing for the warmer weather sports and start right away. We chose to open up to the possibility that there must be a way to succeed in the off season. Because we chose to think positively and look for solutions that fit what we want to do, all sorts of ideas started coming to us. We are now positive we have a plan that will succeed. So, the answer really depends on the business and your willingness to open up to new creative ideas around it.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Leading with Discernment

Having It All... With No Sleep

Starting a Business with Bad Personal Credit

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.