News and Events

Are You Bound by a Hell or High Water Clause on Your Office Equipment?

Written by Bailey Magee | October 14, 2019

Does your office equipment lease contain a “Hell or High Water” clause? If you plan to lease office equipment or have a lease in place, you owe it to yourself and your company to read the fine print carefully.

What Is A Hell or High Water Clause?

The little unknown clause in office equipment lease agreements

Many third-party companies include  “Hell or High Water” clauses in their leases, meaning the third-party company claims no liability if they deliver defective goods, fails to service the equipment, the equipment failed to operate properly, or the third-party company files for bankruptcy. The lease contains provisions precluding any warranty liability whatsoever. Also, most companies using third-party vendors for leasing transfer the lease after you sign.

The “Hell or High Water” clause means the purchaser (your company) can be required to pay hundreds or thousands of dollars a month for several years, for equipment that never functioned, or stuck with unusable, non-functioning equipment in the case of flood, fire or other physical damage to the equipment.

Does this sound impossible? Don’t bet on it. It is not only possible, it is likely in the case of most equipment leases, and virtually all equipment leases with third-party lessors. As most office equipment dealers use third-party leasing companies, they do not have the flexibility to amend your lease in any way.

To protect your business, look for a partner that offers true in-house leasing and if not, demand that the “Hell or High Water” clause be omitted from your equipment lease.

Benefits of Using In-House Leasing for Your Office Equipment

In-house leasing allows the dealer to have flexibility in working with your business that is not easily available with third-party leasing arrangements. ­Leasing gives companies the option to upgrade to newer, improved equipment at the end of each term, giving them the latest technology.

In-house leasing ensures that companies are receiving their lease and high-quality office equipment from the same place and not working with third-parties.

KEY POINTS OF IN-HOUSE LEASING:

  • Flexible Budgeting: It is easier to budget a monthly payment than a large upfront sum, and in-house leasing offers customized agreements
  • Security and Compliance: Newer models have improved security features and are more in line with audit requirements
  • Maximum Productivity: Upgrading keeps you current with technology and functionality
  • Reliability: Newer models have improved durability, and accessible service and supplies
  • Baggage Free: No depreciating value on your assets, or worries about what to do with the equipment when you do not want or need it anymore (copiers can be impossible to give away)
  • Less Hassle: Upgradingeliminates the worries of service issues for old machines
  • One Point of Contact: In many cases leases with other companies can be taken over. This provides a single billing point and contact for payments and service

RJ Young Provides True In-House Leasing for Office Equipment

RJ Young’s in-house leasing and financing services give businesses financial flexibility so they can adjust to accommodate for future growth. In addition, it allows businesses to create a program that conforms to businesses’ specific needs for the long-term, with a guarantee for the duration of the partnership.

We Make It Right™ Guarantee

At RJ Young they do not use “Hell or High Water” clauses that obligate customers to commit to unconditionally pay all of the lease payments provided in its lease agreement no matter what kind of service they provide. As a matter of fact, they do the opposite. RJ Young stands by every product, and service they offer with the We Make It Right ™ Guarantee“If you are not happy with our equipment, service, supplies, billing — anything — let us know and we will make it right, right away.” – Chip Crunk, President & CEO

For over 60 years, they have built RJ Young by focusing on excellence in customer care. RJ Young is so confident in its ability to outperform any of its competitors in the area of customer service that they finance virtually all of their leases themselves. If they fail to meet your satisfaction, they will make it right.

RJ Young can create an agreement that includes:

  • Variable billing options
  • Unusual terms
  • Custom lease length
  • Coterminous terms for added equipment
  • Relocation of equipment between your locations
  • Flexible termination or renewal options

RJ Young can in many cases take over the administration of your leases with other companies and provide a single billing point for all of your office equipment.

Ready to Lease Office Equipment?

RJ Young is one of the only dealers that provides true in-house leasing. To learn more about their in-house leasing and financing, fill out a contact form.