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Equipment Leases

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As with HP, depending on circumstances, equipment leases may be priority or secondary debts.

Check the agreement very carefully to see whether you have the right to keep the equipment at the end of the lease, as with a lease or purchase agreement, or if you will have to pay for the lease of the equipment for all of the period of the lease, whether you return the equipment or not.

Check with the leasing company if the debt will be reduced if you return the equipment.

If you have the right to keep the equipment or if it is essential to you in order to keep trading, then arrears should be treated as a priority debt.


It is a criminal offence to sell leased equipment without the consent of the leasing company. Phone us for advice.

 

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