Equipment Lease Advisory

March 8, 2023
|
Advisory

Equipment Lease Advisory

  • Optimus was engaged to evaluate a live $13M lease transaction that was days away from being finalized.
  • Optimus quantified the difference between expected and actual cost based on unforeseen “loan-shark” rates on interim line financing.  Ultimately, Optimus identified over $5.6M in avoidable cost!
  • Optimus identified and exposed unplanned costs for additional rents and other punitive lease contract terms.

Results Summary

  • $5.6M Avoidable Cost Identified - Punitive Interest of 22.5% charged in interim financing lines.
  • $1.2M Risk Mitigated - Reduced extra (interim) rent levied on Client via Master Lease Agreement.
  • Contract Fully Vetted - All executable documents reviewed for punitive terms and conditions. Multiple points negotiated in Client’s favor prior to execution.

‍