What are my options with a Xerox machine if I go out of business

I'm getting ready to sign a lease for either a Xerox 180 or 3100. Though I don't see this becoming an issue my business partners and I would like to understand what remedies we would face if we were to go out of business before our equipment lease ends.

Thanks for your knowledge on this topic in advance!
 
hahaha. your screwed. Sorry to put it you it so bluntly. I have seen it time and time again where the punter gets caught out, your completely at Xerox's mercy. You "might" be able to come up with some sort of deal but from my experience you are liable for all the payments until the end of your lease.
 
I'm getting ready to sign a lease for either a Xerox 180 or 3100. Though I don't see this becoming an issue my business partners and I would like to understand what remedies we would face if we were to go out of business before our equipment lease ends.

Thanks for your knowledge on this topic in advance!
This will depend on whether the lease is in the name of an incorporated company, or you / your business partner/s as sole traders or a legal partnership. However, check the small print, as very often (and particularly in the case of newly incorporated companies) a personal guarantee will be sought of the director/s. So, even if your company folds, a personal liability may remain. And definitely do what @SoggyWinter suggested and pay a couple of hundred bucks for the eye of a legal eagle to check what you're about to sign.
 
Another option is to buy the machine with finance. You can make sure the monthly repayments are no more than the monthly lease payments (preferably less) and of course you want to be able to settle the outstanding amount at any time minus the interest on the amount still owing. (the whole point of finance as opposed to lease) You can get this written into the agreement.
Not ideal I know but it might be your best option, and you would get something back on selling the machine you now own. There are tax implications with all this. Can't comment on the tax side as it almost certainly different here.
Worth considering!
 
Make sure you don't personally guarantee the machine. Double check with your lawyer.
Though I have to ask. If you are even thinking you may be going out of business why are you signing a contract on a new machine?
 
Make sure you don't personally guarantee the machine. Double check with your lawyer.
Though I have to ask. If you are even thinking you may be going out of business why are you signing a contract on a new machine?

If the op does have genuine doubts over the company's future then yes I'd be questioning a new machine.

But no matter how well the company is doing you have to know your liabilities, especially if multiple parties involved. With recessions and covid we just never know what's in the next few years. I'd be more concerned about their business manor if not finding these things out prior to signing.
 
Leases are something I go round about with our sales reps all the time. On paper it only makes the best sense assuming a perfectly steady flow of revenue at the time you start the lease thru when you end the lease OR if you're a big enough company that the lease payment is small change and doesn't matter.
For a small business, 60 months is a long time for a lease with two scenarios that are probable and problematic.

Scenario 1: If the economy crashes or there is a sudden lowering of business volume you end up on the hook for more equipment than you can afford without the ability to sell the equipment to offset the expense or reduce payments.
Scenario 2: If the economy takes off you can’t upgrade the equipment easily by selling it and getting something more suitable except by rolling the old lease into a new lease which is a very expensive proposition. If you have room for two machines then you could keep both but that's expensive too and could put you into a #1 scenario problem.

With equipment leases you will pay the full lease cost no matter what. If you upgrade they roll the remaining payments in the new lease. There aren't any downgrade options that don't require the same thing (rolling the payments into the new lease).

If you can get a remanufactured machine (that is able to be put under a click charge) that you can buy outright or finance, even if it's a few years older, that's nearly always going to be your better option than leasing unless your company is a bigger company that can absorb long term fluctuations. You can pick up the V2100s for under $30k


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Non-relevant opinion on this industry:
I also have a problem with the whole leasing industry on what I perceive to be artificial pricing schemes. Sales reps are selling this equipment at near full MSRP based on a made up number that the manufacturer sets that isn't tied to true market values because everything is done on leases. The market doesn't get a fair chance to enter the game and level out prices until 5 to 10 years after the equipment is on the market. IE. If I bought the equipment outright at $xxx dollars, then I should be able to sell that equipment two or three years later at $xx or $x but it's nearly impossible to resell the equipment because the dealers have it locked down tight. ie Manufacturers won't buy the equipment back because they'd rather sell their new models at full price vs. buying already used ones. It's hard to find buyers outside of dealers because there isn't an effective market for used equipment except on the auctions which is very low return compared to what you paid originally. Once the equipment been used for 2+ years then it's worth less than 20% of it's original sticker price. It's like driving a new car off the lot and it's value instantly drops by 50%.
 

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