For leasing equipment, a typical agreement is for a fixed term that ranges from 12 to 60 months and requires monthly or quarterly payments. Many equipment lease contracts also come with an automatic renewal provision, which extends the lease for an additional 12 months with the lessee paying the same amount as in the final month of the original lease term. For some small businesses, this is a good deal. If the equipment is functioning properly, hasn't become obsolete and the cost of removing and returning it to the lessor is very expensive or requires significant inconvenience—simply letting the lease renew is a good option. If you need to replace the equipment, however, then it's important to follow the lease termination requirements precisely—especially the notification timetables.
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