Does anyone have experience getting relief on a capital lease

professional profile

April 19, 2020

by a professional from Harvard University - Harvard Business School in Boston, MA, USA

We have printing equipment on capital lease with Xerox. This is our primary manufacturing equipment. C-19 has me looking for ways to preserve cash. We want to keep the equipment operational onsite, but I am looking for ways to reduce my monthly cash expenditure. Has anyone had any luck getting terms of a capital lease renegociated?

2
3
101
Replies
3
commentor profile
Reply by a searcher
from University of Alberta in Calgary, AB, Canada
Peter - they will probably look for you to go interest only for a certain period (say 6 months) and then restart the capital lease where it kicked off. Another option that will be more advantageous for you is to ask for an actual payment deferral and then restructure the lease schedule to commence in the future with the deferred payments added to the principal amount. Either way you will pay for it somehow, but those two options will help save some cash.
commentor profile
Reply by an investor
from Hobart and William Smith Colleges in Dorset, VT, USA
Yes, I do it all the time. Might as well look at the rest of your debt as you consider a restructuring or reprofiling. Shoot me an email redacted
commentor profile
+1 more reply.
Join the discussion