Watch for evergreen clauses

Joel Burroughs, Innovative Lease Services Inc.

As published in Scotsman Guide's Commercial Edition, August 2007.

A number of commercial brokers are turning to equipment leasing as a new line of business. If your clients enter a contract with an equipment-leasing agent, have them look for an evergreen clause -- which creates an automatic renewal at the end of the contract term. The challenge with these clauses is that clients can ignore or forget about them, particularly if the terms cover several years. This can impact these brokers' relationships with their clients.

joel@ilslease.com