When your company needs tools or equipment, you have two main equipment financing options: loans and leases. Generally speaking, a loan saves you money but comes with additional strings. Leasing offers more freedom, providing convenience when it comes to upgrading and repairs. What about maintenance tasks? Is your business responsible for maintaining the equipment you lease?

Lease Agreements and Warranty Details

Every lease agreement is different, so it’s important to read the terms so you know what is expected of your business. That said, leasing companies usually take care of the bulk of the work. There’s not much difference between leasing new equipment and leasing a new car as far as repairs go; the manufacturer generally offers a warranty for parts and service.

If your equipment breaks down because of faulty parts or covered problems, you can simply take the equipment to the authorized repair shop. The warranty should cover the complete cost. Many leases also provide coverage for regular services, such as oil changes and other things you need a mechanic to handle.

Difference Between Maintenance and Repairs

The majority of maintenance tasks aren’t the same as repairs. They involve keeping equipment in good working order. Here are a few things that general maintenance includes:

• Keeping the equipment clean after every use
• Lubricating moving parts periodically
• Checking the levels of important fluids and topping up as needed
• Checking or replacing air filters

Again, oil changes are often covered in lease agreements for new equipment. Sometimes, the same thing goes for worn-out belts and air filters. You need to check to be sure.

If you’re leasing used equipment, it’s even more important to see which repair and maintenance tasks are covered. Older equipment may not have any manufacturer warranty remaining.

Importance of Maintenance for Leasing or Buying Equipment

If you use equipment financing to buy a piece of equipment, you should take care of it. After all, you’re going to own it. Protecting business assets provides benefits:

• You take better care of your investment
• Equipment lasts longer
• Well-maintained machinery performs better
• Your team avoids costly breakdowns and work pauses
• Expensive parts are less likely to need repairs

Even if you’re leasing, it still makes sense to maintain the equipment. Many leases have clauses related to equipment condition. If the equipment is damaged or not functioning correctly, you may end up paying extra fees.

Maintenance doesn’t take long, and it helps you avoid many headaches down the road.