Throughout this series of posts, we’re sharing key lessons learned to protect your company in payment processing terms and contracts. This week, we hope you find the information valuable to your business. If you’d like additional information on these blogs, please contact us by clicking here.
Tip 4: Do not lease equipment.
Business owners should always purchase credit card terminal equipment and avoid leasing. Reasonable exceptions can be made for monthly rental of equipment for short-term seasonal use or for unique situations, but in most cases, businesses locked into lease contracts pay 8 to 20 times the actual value of the for equipment over a four- or five-year term. These lease contracts are written such that they cannot be cancelled, and all payments agreed to in the lease must be paid, regardless of the business situation. We suggest you always seek to purchase equipment outright and save thousands of dollars. If you are in a lease agreement today, ask for the contract to clearly understand your payout term and time frame so you may get out of the lease as soon as possible.