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Over Holding On MFP Lease Costs Unnecessary Dollars

One of the trends we are seeing is a tendency for some clients to over hold on expiring MFP leases. What do I mean by over holding? Simply a tendency to ignore the end of the lease, move into an over holding situation as far as the leasing company is concerned and to continue to pay the same lease payment month to month or quarter to quarter while continuing to use the equipment.

Of course in the process of dealing with clients we take great pains to advise them when their leases are coming due and to enter into discussions about their go forward situation. Unfortunately at times clients ignore our efforts and just continue to pay lease bills and seek our sanction to renew support while they 'make up their mind' about what they want to do.

When this situation lasts for a month or so it does not usually become critical but when it persists for months on end it starts to become serious for our clients.

Here's why.

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