Settlement Offer

Discussion in 'Growing and Managing a Business' started by aprovado, Jul 14, 2010.

  1. aprovado

    aprovado
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    I am in the process of exiting a 5-year equipment lease after two years of payments.

    Leasing company says one option is to pay the remaining dollar amount on the lease as one lump sum, and provided me with the dollar amount for the payoff.

    I asked to negotiate their numbers.

    They said the negotiation starts with my submitting a "Settlement Offer" - basically a written counter-offer to their initial offering for the amount needed to payoff the lease early.

    Should a Settlement Offer be worded in a specific way?

    Is there a form template I should use?

    Thank you in advance for your time in this matter.
     
  2. Fergal

    Fergal
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    Welcome to Business Advice Forum aprovado. What country is your business based in?

    Personally I wouldn't worry about the format of the settlement offer. I would simply send them a letter or email with an offer figure. I would make the figure low and explain my reasons for offering that figure. If you are offering a low figure they are more likely to come back with a lower counter offer.

    Good luck with it and please post back to let us know how it works out.
     
  3. pwsolutions

    pwsolutions
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    how is that settlement offer? does it make a big difference?
     
  4. BizDoc

    BizDoc
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    Negotiation tip

    Definitely start ridiculously low. In a negotiation of this sort, information is key. The first one who announces a figure loses.

    Cheers!
     

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