Checklist Equipment Lease

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Checklist Equipment Lease

Checklist Equipment Lease

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Checklist Title: Equipment Lease Procedure Checklist

**Date:** {{date}}

**Prepared by:** {{preparer_name}}

**Equipment Name:** {{equipment_name}}

**Lease Agreement Reference No.:** {{lease_agreement_ref_no}}

Section 1: Pre-Lease Assessment and Due Diligence

**1.1 Identify Equipment Needs:**

- [ ] Define specific equipment requirements (type, specifications, capacity). Date Completed: {{date_completed_1_1}}

- [ ] Justify the need for leasing over purchasing. Date Completed: {{date_completed_1_1a}}

**1.2 Supplier Identification and Quotation:**

- [ ] Research potential equipment lessors/suppliers. Date Completed: {{date_completed_1_2}}

- [ ] Obtain multiple quotations/proposals. Date Completed: {{date_completed_1_2a}}

- [ ] Compare lease terms, costs, and service agreements. Date Completed: {{date_completed_1_2b}}

**1.3 Financial Analysis:**

- [ ] Conduct a cost-benefit analysis for the lease. Date Completed: {{date_completed_1_3}}

- [ ] Assess impact on company budget and cash flow. Date Completed: {{date_completed_1_3a}}

- [ ] Obtain internal financial approval for the lease. Date Completed: {{date_completed_1_3b}}

Section 2: Lease Agreement Negotiation and Review

**2.1 Review Lease Agreement Draft:**

- [ ] Review all clauses, terms, and conditions of the draft lease agreement. Date Completed: {{date_completed_2_1}}

- [ ] Pay close attention to lease duration, payment schedule, maintenance responsibilities, and termination clauses. Date Completed: {{date_completed_2_1a}}

**2.2 Legal Counsel Consultation:**

- [ ] Engage legal counsel for independent review of the lease agreement. Date Completed: {{date_completed_2_2}}

- [ ] Address any legal concerns or potential risks identified. Date Completed: {{date_completed_2_2a}}

**2.3 Negotiation of Terms:**

- [ ] Negotiate favourable lease terms, including pricing, service level agreements, and liability. Date Completed: {{date_completed_2_3}}

- [ ] Ensure all negotiated amendments are accurately reflected in the final agreement. Date Completed: {{date_completed_2_3a}}

Section 3: Agreement Execution and Documentation

**3.1 Final Agreement Review and Signing:**

- [ ] Conduct a final review of the lease agreement before signing. Date Completed: {{date_completed_3_1}}

- [ ] Obtain authorized signatory for the company. Date Completed: {{date_completed_3_1a}}

- [ ] Ensure all necessary parties sign the agreement. Date Completed: {{date_completed_3_1b}}

**3.2 Documentation and Filing:**

- [ ] Obtain a fully executed copy of the lease agreement. Date Completed: {{date_completed_3_2}}

- [ ] File the original agreement securely. Date Completed: {{date_completed_3_2a}}

- [ ] Create copies for relevant departments (e.g., accounting, operations). Date Completed: {{date_completed_3_2b}}

- [ ] Update asset register with lease details (e.g., lease term, payment schedule, asset ID). Date Completed: {{date_completed_3_2c}}

Section 4: Equipment Delivery and Setup

**4.1 Delivery Coordination:**

- [ ] Coordinate delivery schedule and logistics with the lessor. Date Completed: {{date_completed_4_1}}

- [ ] Prepare the installation site for equipment arrival. Date Completed: {{date_completed_4_1a}}

**4.2 Inspection Upon Delivery:**

- [ ] Inspect equipment upon delivery for any damages or discrepancies against the order. Date Completed: {{date_completed_4_2}}

- [ ] Document any issues and notify the lessor immediately. Date Completed: {{date_completed_4_2a}}

**4.3 Installation and Testing:**

- [ ] Oversee the installation and setup of the equipment. Date Completed: {{date_completed_4_3}}

- [ ] Conduct initial testing to ensure equipment is fully operational and meets specifications. Date Completed: {{date_completed_4_3a}}

Section 5: Ongoing Management and Maintenance

**5.1 Payment Schedule Adherence:**

- [ ] Establish payment reminders for lease installments. Date Completed: {{date_completed_5_1}}

- [ ] Verify that payments are made on time according to the lease schedule. Date Completed: {{date_completed_5_1a}}

**5.2 Maintenance and Servicing:**

- [ ] Schedule routine maintenance as per the lease agreement and manufacturer guidelines. Date Completed: {{date_completed_5_2}}

- [ ] Keep detailed records of all maintenance and servicing activities. Date Completed: {{date_completed_5_2a}}

**5.3 Performance Monitoring:**

- [ ] Monitor equipment performance and utilization. Date Completed: {{date_completed_5_3}}

- [ ] Address any operational issues or breakdowns promptly. Date Completed: {{date_completed_5_3a}}

Section 6: Lease End Management

**6.1 Review Lease Expiration Date:**

- [ ] Note the lease expiration date and begin planning for end-of-lease options. Date Completed: {{date_completed_6_1}}

**6.2 Options at Lease End:**

- [ ] Evaluate options: renewal, purchase, or return of equipment. Date Completed: {{date_completed_6_2}}

- [ ] Negotiate renewal terms if applicable. Date Completed: {{date_completed_6_2a}}

- [ ] Assess purchase option and fair market value if applicable. Date Completed: {{date_completed_6_2b}}

**6.3 Equipment Return/Disposal:**

- [ ] Prepare equipment for return according to lessor's specifications (cleaning, de-installation). Date Completed: {{date_completed_6_3}}

- [ ] Obtain documented proof of equipment return and condition. Date Completed: {{date_completed_6_3a}}

- [ ] Update asset register for equipment disposal/return. Date Completed: {{date_completed_6_3b}}

Signature Block

**Authorised by:**

___________________________

{{authorised_signatory_name}}

{{authorised_signatory_title}}

Date: {{date_signature}}