Congratulations! You have decided to list your Lease Agreement to thousands of interested Transferees who are interested in taking over you Lease. Please fill in the requested information in the Lease Transfer Listing and you will be on your way!
Table of Contents:
The Lease Transfer Process
- Complete the Lease Transfer Listing.
- Pay a one-time Basic Listing Fee of $199 through our secure payment site.
- A Lease Transfer Expert reviews your Listing and contacts you briefly to discuss the details of your.
Listing and options for premium posting. - Your Listing is activated, exposing your Lease and Equipment to thousands of Transferees.
- Your Listing stays active until you de-activate it or you let us know that you made a successful
Transfer and we will de-activate the Listing for you. - You can use the Account Management section to monitor the number of “hits” on your Listing
- You can use the Account Management section to update your Listing at any time [Note: this should be a hot link to the Listing page]
- Interested Transferees find your Listing and contact you through ReLease Market messaging. You
will receive an email to the account that you provided and messages will be archived in your Account Management section.
You will not see the Transferee’s contact info and Transferees will not see yours. You are free to exchange contact information directly if you choose. - You negotiate the terms of the Transfer with the Transferee
- Our Lease Transfer Experts are on standby to help Transferors and Transferees negotiate fair terms
for Lease Transfers. Contact us now. - You contact your Equipment Lessor to process the Lease Transfer (For details of the Lease Transfer process, please click here)
- Our Lease Transfer Experts are on standby to help Transferors negotiate fair terms for Lease Transfers with their Lessors. Contact us now.
- Your Lessor approves the Transfer and gives you the necessary paperwork
- Because leasing companies have specific lending appetites, your Lessor might not approve the Transfer. If that happens with your Transfer, please contact one of our Lease Transfer Experts for help. The ReLease Market team is made up of leasing industry veterans. We partner with leading leasing companies who are on standby to buyout your Lease and lease the Equipment to most Transferees. We will be able to process most Transfers at no additional cost to you.
- The Transferee signs the Lessor’s Transfer documentation and takes over the Lease. Depending on the terms of the Transfer, you might need to sign as well.
- The Transferee takes control of the Equipment and arranges for its delivery to the Transferees premises.
Are you busy running your business and don’t have time to navigate the paperwork?
CLICK HERE TO SPEAK WITH A LEASE TRANSFER EXPERT.
Lease Transfer Listing
When posting a new lease listing, please input the following information in the designation fields or include these on the description section.
| Transferor/Lessee Information | |
|---|---|
| Transferor/Lessee Name | The proper legal name of the entity listed as the Lessee in your Lease documents. This information is for our purposes. We will not disclose it to interested Transferees without your prior consent. |
| Transferor/Lessee Contact Name | The name of the business in your organization who is authorized to deal with the Lease Transfer. This information is for our purposes. We will not disclose it to interested Transferees without your prior consent. |
| Transferor/Lessee Contact Phone # | The phone number where we can reach you. This information is for our purposes. We will not disclose it to interested Transferees without your prior consent. |
| Transferor/Lessee Contact Email | The email address where we can reach you. This information is for our purposes. We will not disclose it to interested Transferees without your prior consent. |
| Transferor Zip Code | Enter your zip code. This allows Transferees who are searching for Lease or Equipment to rank its results by proximity. |
| Equipment Details | |
| Equipment Category | Choose the broad category of Equipment that your Leased Equipment belongs to from the drop down menu |
| Equipment Type | Indicate the type of Equipment |
| Manufacturer | Type in the name of the manufacturer of the Equipment |
| Model | Type in the Model name and number (if any) |
| Year of Manufacture | Choose the model year of the Equipment from the drop down menu. If you do not know, then choose the year you entered into your Lease. |
| Additional Equipment Features | List any extra features or components of your Equipment, including if there is a service contract included in the monthly rental or if you will include supplies or consumables with the transfer. |
| Upload Photos of Equipment | You may upload up to 5 photos. We suggest you provide a combination of the manufacturer’s photos and photos taken of the Equipment in its own business. |
| Lease Details | |
| Lessor Name | The name of the Equipment Leasing Company from your Lease Agreement. |
| Lease Start Date | The Start Date (dd-mm-yyyy) or Commencement Date indicated on your Lease Agreement. If your Lease Agreement has both, then please choose the date that is the first day of your Lease Agreement’s Term. |
| Lease End Date | The last day of the Lease Agreement’s Term |
| Lease Term | Input the number of months of the Lease Agreement’s Term. |
| Total Number of Rental Payments | Input the number of Rental Payments required under the Lease Agreement. |
| Rental Payment Frequency | Input the frequency of Rental Payments under the Lease Agreement |
| Rental Payment Amount (pre-tax) | Input the amount of each periodic Rental Payment required under the Lease Agreement |
| First Payment Amount (if different from regular Rental Amount) | If you paid a large first Rental Payment or a Down Payment, then input that amount. If you are just making equal Rental Payments throughout the entire Term of the Lease Agreement, then leave this space blank. |
| Security Deposit Amount | If you provided a Security Deposit for your Lease Agreement, then input the amount of the Security Deposit here. |
| Purchase Option Type | Almost every Lease has an option for what the lessee is entitled to do at the end of the Lease term. Typically, a lessee may purchase the Leased Equipment, continue to pay rent and keep the Equipment indefinitely or return the Equipment. Please choose from the drop down list the type of Purchase Option set out in your Lease Agreement. If you do not see the type described, then please choose ‘Other’ and describe the Purchase Option in the space provided. |
| Purchase Option Price | If your Lease Agreement allows you to purchase the Equipment, then please input the Purchase Option Price or formula set out in your Lease Agreement |
| Additional Lease Features | Describe any other features of your Lease Agreement that you would consider important for someone assuming the Lease Agreement to know |
| Lease Transfer Incentive | If you are willing to provide an incentive (e.g. cash of some other form of consideration) to someone to take over your Lease Agreement please describe what you are prepared to offer. Conversely, if your Lease has very favorable terms, say because you have built equity in your Equipment by virtue of having made a large first Rental Payment, please describe whether you would like the Transferee to compensate you for taking over the Lease Agreement. |
| Additional Details | Include any additional details about the Lease, the Equipment or the terms of Transfer that would help interested Transferees choose to deal with you. |
| Upload Lease Agreement(s) [Available Soon] | You can upload your Lease Agreement and any ancillary legal documentation (such as Delivery & Acceptance Certificates, Guaranty Agreements, Purchase Option Addendum, etc.). We will not share this information with interested Transferees, but it will help us help you negotiate the transfer of your Lease Agreement. |
Tips for Listing and Transferring Your Lease
The "Transferor" is the current Lessee under a Lease. The Transferor is offering its Lease and Equipment for someone else to take over. The “Transferee” is the business taking over the Lease and taking possession of the Equipment. The basic steps in the process from the perspective of the Transferor are set out in the in The Lease Transfer Process above.
We have also provided some tips and guidance below for how to use ReLease Market’s website, experience and Lease Transfer Experts to ensure a smooth Lease Transfer.
How to Make a Great Listing
- Have your Lease contract handy. It contains just about all the details you will need to describe in your Listing.
- Include the Rental Payment Frequency and Rental Payment Amount in your Listing. Interested Transferees will be comparing Rental costs from among their various options.
- Include the Purchase Option Type and Purchase Option Price in your Listing. The cost of purchasing the Equipment at Lease end is an important consideration for Transferees.
- Contact your Lessor for a quote for a Buyout Amount and a quote for an Early Termination. Many Lessors do not want the Equipment back, so your Lessor might only give you a Buyout quote. There may be a nominal charge to issue a Buyout quote. You can dispute this charge because you probably paid an administrative fee when you entered the lease, plus issuing a Buyout quote should be as simple as pushing a button on the Lessor’s lease administration system and it is a cost of them doing business. The Buyout quote will give you a starting point in that you will know how much the Lessor would charge you to get out of the Lease.
- Compare the Rental Payment amount and Purchase Option Price with those values for similar Equipment listed on ReLease Market. If you feel that the terms of the Lease you are offering is not competitive or if you need to make a quicker sale you can add a Lease Transfer Incentive to make your offer more compelling. Conversely, if your Lease terms look better than the other Listings, you can ask the Transferee to pay you a Lease Transfer Incentive to take over your Lease.
As always, if you have difficulties or questions at any time during the Listing process, please contact us and we will be very happy to assist!
Make Your Equipment Stand Out
Interested Transferees are probably shopping several Listings on ReLease Market and even in other places to fill their need for specific equipment. To help you make a quick Lease Transfer on the best terms for you, it will help that you present your Equipment in the best possible light. Here are some things that will help:
- Provide as much detail as possible about the Equipment, its manufacturer, model and features. Transferees may be looking for something specific, and your Equipment could be the perfect fit!
- If your Lease contract only describes the Equipment in general terms, then refer to the original vendor’s invoice for more detail.
- Upload photos of the Equipment. Lots of people respond best to visual cues. We allow you to upload as many as 5 photos. We suggest you provide a combination of the manufacturer’s photos and photos taken of the Equipment in operation in your business.
- Keep your Equipment in top running condition. Make all required service checks and take care of any service needs. We give you a free form input field under Additional Equipment Features. You can say that the Equipment has been maintained in accordance with its manufacturer’s requirements and that you will provide the Transferee with a complete set of maintenance records.
Keep Your Listing Current
We want you to be successful in transferring your Lease, so you can come back and update your Listing at any time. Go to Manage My Account and click on the Listing to begin to edit it. You can add more details or edit any of the existing details. If you have received feedback from interested Transferees or have not been contacted much, you can consider adding a Lease Transfer Incentive to generate more interest.
Contacting Interested Transferees
- Interested Transferees will initiate contact by sending you a note through Release Market Messenger. The note will show up in the email account you provided with your Contact Information and all correspondence will also be archived in your Account Management section.
- Anyone who contacts you has already registered as an interested Transferee and feels your Equipment and Lease could be the right fit for their business. Respond quickly to all interested Transferees. They are motivated and are probably considering several options.
- After you have made initial contact, you and the Transferee are free to exchange contact information and to continue your negotiations outside ReLease Market. We suggest that you continue to use ReLease Market for your correspondence so you have all correspondence in the same place. If you choose to go “off-line”, make sure you keep all correspondence in a file in case you need to access it for any reason.
Negotiate the Terms of Your Lease Transfer
- Our Lease Transfer Experts are standing by to help with the process at any time. Click here to contact us if you feel the need.
- Before you start negotiations, it is a good idea to ask your Lessor to provide a Buyout quote. Once you know the Buyout Amount, you will know your downside risk so you can determine how much money you will save by Transferring your Lease. If you cannot find someone to take over your Lease and save you money, then contact our Lease Transfer Experts. We might be able to help you negotiate a better Buyout Amount and a better price to resell your Equipment.
- An interested Transferee will probably ask you to provide any information about the Lease and the Equipment that you might not have completed in your Listing. It is best to comply with any reasonable requests for information since the interested Transferee is keen to complete the Lease Takeover which will save you lots of money.
- The Transferee may ask for copies of the Lease contract and service records for the Equipment. Do not provide either of these until the Transferee has provided you with its contact information and you have verified the same. Click here to ask one of our Lease Transfer Experts to help you verify that you are dealing with a legitimate entity.
- The Transferee may ask to inspect the Equipment or to have a third party do an inspection. If you agree to pay for an inspection or valuation, then make sure the report is addressed to you and that the person providing the report acknowledges in writing that the report may be relied on by other interested Transferees. You may want to provide this report to other interested Transferees if you cannot reach an agreement with the current Transferee.
- The interested Transferee may ask for a Lease Transfer Incentive to make the economics of the Lease Takeover work. You may agree to provide an Incentive, but we suggest that you make any concessions contingent on the Transferee’s credit condition. An interested Transferee with poor credit will not have the same options as one with a strong credit history. Your Lessor will not tell you how strong the Transferee’s credit is, only whether they have been approved or declined for the Lease Takeover. Therefore, you might want to make any concessions contingent on the Transfer being approved and your company being released from any continuing obligation under the Lease.
- Any agreement you make with a Transferee should be contingent on the Transferee getting approved for the transfer. This way, you do not tie up your Lease and Equipment with a Transferee that is not creditworthy.
Having the Transfer Approved by Your Lessor
- Your Lease contract almost certainly requires that any Lease Transfer is subject to the prior written approval of the Lessor. Therefore, you should notify your Lessor as soon as you reach an agreement with an interested Transferee.
- The Lessor will require a complete credit package to allow the Lessor to evaluate the creditworthiness of the Transferee. It is usually better to allow the Lessor to deal directly with the Transferee because the Lessor knows what information it requires and knows how to ask for it in the most diplomatic way. Our Lease Transfer Experts are also available to assist with the process.
- The credit package will typically include:
- Complete legal name, jurisdiction of incorporation, address and time in business of the Transferee;
- If the amount owing under the Lease is substantial, the Lessor may require the Transferee’s financial statements from its most recent year end plus current interim statements; and
- If the Transferee’s credit is not very strong, the complete legal name, date of birth, home address and social security number of the owner(s) of the Transferee.
- The Lessor might ask for an Administrative Fee to process your application for a Transfer. The Administrative Fee may be due with the credit application or it may be due upon credit approval. The Lessor incurs costs to consider the Transfer, such as its out-of-pocket costs to access credit information and the costs of internal work by its credit and administrative personnel to evaluate credit, prepare the Transfer documents, file security registrations against the Transferee and change the reference to the Lease in its systems. The amount of the Administrative Fee may differ based on the Rent amount. You can expect your Lessor to charge you between $250 and $1,000 for the complete transfer. Our Lease Transfer Experts are also available to assist you negotiate the cost of the Transfer. Who pays the cost of the Transfer is a point of negotiation between the Transferor and Transferee.
- If the Transferee is strong, then you can expect the Lessor to release you in full from any obligations
under the Lease. If the Transferee is ok but not very strong, then the Lessor might ask you to remain
liable for all or a portion the Transferee’s obligations under the Lease. - If you agree to remain liable for the Transferee’s obligations under the Lease, then you should have reasonable assurances of the following:
- access to the Equipment on demand to ensure it is being properly maintained;
- reporting from the Lessor in the event there is any change in the Transferee’s financial condition or default under the Lease;
- reporting from the Transferee; and
- the ability to take back the Equipment if you are required to make Rent payments.
What if the Lessor Declines your Transfer?
- Each Lessor has certain specific market niches and expertise in dealing with lessees with specific credit profiles. Your interested Transferee might be a good credit risk, but might still not fit your Lessor’s comfort zone. If your request for Transfer is declined on the grounds that the Lessor is not comfortable with the interested Transferee’s credit, then you have two options:
- Contact our Lease Transfer Experts to explore the possibility of one of our funding partners buying out the Lease and leasing the Equipment to the interested Transferee. We have several
funding partners lined up who like your type of Equipment and who have credit appetites to deal with Lessees with almost every type of credit profile. There is no cost to you for ReLease Market to find another leasing company to help with the Transfer. - Present another interested Transferee to your Lessor. If you have several interested Transferees lined up to take over your Lease, then you might want to go the next Transferee on your list and start the process over again with your Lessor.
- Contact our Lease Transfer Experts to explore the possibility of one of our funding partners buying out the Lease and leasing the Equipment to the interested Transferee. We have several
How to Do the Lease Transfer
- Every Lessor has its own requirements, but in general, most Lessors will require the following documents to be completed and returned:
- Lease Transfer Agreement, sometimes referred to as a “Lease Assignment Agreement” or a “Lease Assumption Agreement”. This agreement is signed by the Lessor, Transferor and Transferee. The Transferor will be required to represent and warrant that the Equipment is in good condition and that the Transferor is not in default under the Lease. The Transferor may be required to remain liable for the Lessee’s obligations under the Lease if the Transferee’s credit is not as strong as the Transferor’s. If the Transferor is expecting to be released from any further obligations, then make sure the Lease Transfer Agreement specifically addresses this point. The Transferor will be required to assume the rights and obligations of the Lessee under the Lease.
- Insurance Confirmation. The Transferee must arrange with its insurance broker to confirm directly to the Lessor that the Equipment is now being insured in accordance with the requirements of the Lease.
- Registration forms. The Lessor will register the necessary changes the security filings regarding the Equipment and the parties to the Lease. The Transferor and Transferee may be asked to sign and return certain forms in connection with this.
- Administrative Fee. The Lessor will charge an Administrative Fee to process the Lease Transfer. Payment may be required by check, certified funds or direct debit.
- Others. Depending on the individual circumstances of your Lease or Transfer.
- Each Lessor has its own policies regarding signing and returning the Lease Transfer documents. Some will require original signed documents, some may require that signatures be witnessed or even notarized, while others may accept scanned or faxed documents.
- Once the Transferor and Transferee have completed the Lessor’s requirements for the Lease Transfer (i.e. signed the appropriate Transfer documents, Transferee has provided proof of insurance, both parties have paid the appropriate fees, and any other specific requirements of the Lessor), now you are ready to transfer control of the Equipment. Before you transfer control of the Equipment, make sure you cover off the following points:
- Get written confirmation that the Lessor has approved the Lease Transfer and has received all necessary documents and fees.
- Technically, as soon as the Transfer is complete, control and responsibility for the Equipment pass to the Transferee (who is now the primary lessee). Therefore, the Transferee will want to take the necessary steps to safeguard and take physical control over the Equipment as soon as possible.
- The Transferee should arrange for transportation of the Equipment from the Transferor’s premise so the Transferee’s. Make sure to use a bonded transport company that has experience moving this type of equipment.
- It is important to insure the Equipment during transit. Most transport companies provide insurance that covers loss or damage based on the weight of the goods being transported. The amount of such coverage would typically pay the Lessee a small fraction of the cost to replace your Equipment. We recommend that the Transferee speak with its insurance broker to arrange for adequate insurance coverage for the Equipment while it is being transported from the Transferor’s premises. Even if the distance is across the street, it is common for the Equipment to be damaged while being loaded or unloaded from the transport vehicle.
- ReLease Market has partnered with transport companies and insurance providers who are experienced and understand the risks inherent in moving large equipment. Our Lease Transfer Experts are standing by to help with the process at any time. Click here to contact us if you feel the need.
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