Tag Archives: contract

Being Careful With Credit Cards

When it comes to getting equipped with a credit card, many people are aware of the advantages and disadvantages, but few are aware of how to ensure that they are getting the best deal through being careful about the credit card provider they use, and ensuring they have read the terms and conditions, and are therefore aware of all the cost centers that will affect them during their contract.

Watch out for:

Annual Fees – Not all credit card providers will charge an annual fee, but by the same token not all those who do charge an annual fee will necessarily be the least cost-effective. Keep in mind that different credit card providers will charge in different ways, and being away of the ways you are charged means you get the best deal, and can budget for these expenses.

Late Payment Charges – Should your credit card payments be later than expected then as well as the interest still being due you will have to incur a late payment fee. This is justified by the credit card providers through the consideration that it could cause cash flow problems, and may mean that their financial planning could be off-set or not as projected. Late charges should be a consideration when costing a credit card; a great way to avoid this is to set up a direct debit so your payment is taken directly out of your bank account.

Exceeding Your Limit – When you exceed your credit limit the likelihood is that you will be charged, unless you make prior arrangements with your credit card provider. You should be aware of what these charges are before you enter into a contract with a credit card provider. To avoid these costs, many choose to take out another credit card to finance clearing the limit, whilst others may look towards short-term solutions like an overdraft or long-term solutions like a bank loan. Please be careful not to spend money on a credit card unless you can afford it.

Avoid:

Small Companies – Avoiding small companies can ensure that you do not come across problems that would not face well-known, reputable house-hold names. Should a company be a public limited company/listed company or be owned by such then the inherent risk of unfair contract terms and a shift away from best-practice are significantly reduced by PR factors and media pressures/influences.

High APR/0% initial APR – Choosing to contract with a credit card company that offers a great introduction rate and a higher rate in the long term is relying on your lack of financial control to make money. If you are not in total control of your finances and ultimately earn less than you make then please avoid these at all costs.

Equipment Lease In Australia

There are many choices in commercial equipment finance in Australia. A preference today can be to enter an equipment lease contract. A Car lease and equipment leasing are more or less similar to each other. If the business survives and flourishes, the company will always have the option of buying the equipment once they are done with the loan. However, there are certain basic points that one must always keep in mind while entering equipment lease contracts.

When it comes to equipment leasing, your responsibilities will be a lot more than the leaser, whose responsibilities end with his just signing the contract. You must make sure that you will successfully be able to fulfill all your responsibilities, as from then on, you will have to do almost everything starting from taking good care of the equipment, paying the lease contract every month, and even the insurance and rental fees on certain occasions.

If you are a company the directors might also be required to be guarantor when it comes to the equipment lease contract. This is done by the leasing companies in order to ensure the safety of the equipment being leased out. In case any damage is done to the equipment or the loan is not repaid, the guarantor will also be answerable to them in that case.

As long as you are in charge of the machinery, expenses will not at all be incurred on the part of the real owner. That is why equipment lease contracts are also called triple-net contracts, since the consumer has to undertake the responsibilities of equipment maintenance, liability and casualty insurances and the payment of taxes associated to it.

When the hell-or-high water clause is present on the lease contract, it means the consumer is bound to pay the rent as long as the lease lasts, irrespective of any kind of external event that affects either the equipment or the contract itself. If there are any claims to be made against the leasing company, it is regarded as something for which legal steps need to be taken separately.

Once the equipment lease contracts end, normally the lease agreement asks to buy the equipment at the residual One can also renew the contract. However, establishment fees can be charged and is subject to the lenders approval.