LIES AND GENERIC DOCUMENTS
Working with a client to acquire a photocopier recently, we invited companies in to quote for the business.
When we queried some of the terms in the finance document, One sales rep from a company based in NW Kent emailed our client written confirmation, allegedly authorised by the MD of the company, in which they promise to amend the terms of the finance leasing document to suit our needs.
This was quite simply a lie, for neither the sales rep or any Director of a sales company has jurisdiction over the terms of the Finance companies documentation, terms or procedures.
Yet another major problem with the suppliers proposal, was that the leasing document they were asking the client to sign was a generic one, which at the moment of signing by the client was not assigned to any Finance company.
Instead once the document had been signed the supplier would look to place the contract wherever they could and generally for the best price.
To cover all eventualities and to meet all potential funders criteria, a generic finance document generally contains the worst terms of all the funders rolled into one agreement, together with, for example, the highest documentation fees, (a completely unnecessary charge in our opinion) and totally unfair roll over terms for when you miss the termination notice deadline.
Tip: If you are considering leasing office equipment, make sure you only sign a leasing document from the actual finance company who are actually going to finance the equipment, take time to read the terms of the agreement and be sure the terms are fair for you.
If you are at all unsure about a lease or a maintenance agreement, contact us for a contract review.