Personal Guarantee for leased Xerox?

[Fyshy]

I have read other posts on this forum regarding personal guarantees for leased equipment... but looking for more current thoughts and comments. In our 36th year of business and now 100% digital shop, we are looking to add a Xerox V180. Would you sign a personal guarantee?

Look forward to your comments. Thanks and have a nice July 4th!

 

[SoggyWinter]

NO. Tell them to strike that clause out of the lease. Out of curiosity, is this a lease from Xerox Financial or another company?

 

[SoggyWinter]

I'd suggest spending a few hundred dollars on having an attorney review the lease. Copy the text into Word or a PDF at a 12pt font so that they can mark it up with comments easily and quickly.

 

[jwheeler]

I have read other posts on this forum regarding personal guarantees for leased equipment... but looking for more current thoughts and comments. In our 36th year of business and now 100% digital shop, we are looking to add a Xerox V180. Would you sign a personal guarantee?

Look forward to your comments. Thanks and have a nice July 4th!

I used to sell gear for another manufacturer. We would only ask for the personal grantee (PG) if the customer had poor credit or limited credit history. If you don't fall into either of those categories, it's possible there is concern with COVID causing alot of companies to go out of business, so they want some extra protection. I would personally never sign a PG because they can now come after your personal assets if anything were to happen. If you really want this Xerox, either get your own loan from your own bank and pay cash to Xerox (preferred method), find another Xerox dealer in the area who won't require a PG, or check out other manufacturers (Konica Minolta, Ricoh, Canon).

 

[Digital Press Guy]

SoggyWinter makes a good point. A few hundred dollars spent on an attorney up front could save you thousands down the road. Finance contracts aren't written to protect your interests.

 

[Fyshy]

Thanks all. My credit is excellent. Good advice. Happy Fourth of July! Ain’t it great to be living in this great country! No place like it. Enjoy.

 

[ReprographicsConsultant]

You've gotten very good advice from others. (Personally, if I owned a 36 year old company, I wouldn't agree to a personal guarantee on a lease.)

The one point I would like to add: DO NOT bundle lease AND maintenance into an Equipment Lease Agreement. The Maintenance Agreement should be a separate contract. ALWAYS.

[I am a CPA by education, but only worked as an accountant during my college years. After college, I got into the "Reprographics" business. I was part of the ownership team that took two different companies (at two different times) to over $23 million in sales. Although I am not an attorney (and I do not give legal advice), I am willing to take a look at the lease that's being proposed to you.... no charge for me doing that. At 73, I like to help people out when I can. Never hurts to have another set of eyes on agreements. You can reach me at [email protected]]