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Should You Lease Business Equipment in 2012?

Posted on | January 18, 2012 | No Comments

Another year is about to end and as the year 2012 comes in, many business owners will need to make important decisions for their companies.  If you own a business, one question that you might need to consider is, “Should I lease business equipment?”

Leasing equipment presents many benefits but you should also be aware of some drawbacks.  Listed below are some of the most important advantages leasing business equipment.  Take a closer look at each and see how it applies to your own business.

Equipment Leasing Benefits

Get access to the latest equipment.  Having a small budget may limit your options if you’re going to purchase equipment.  State-of-the-art or the newest models of equipment will obviously cost more than older versions.  When you lease, you only need to make small monthly payments and you will have access to the latest and the best in the market. Read more

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Practical Tips for Businesses Leasing for the First Time

Posted on | January 9, 2012 | No Comments

Leasing can be a great option for a business that needs to acquire equipment but have a limited budget.  Ready to use leasing to help finance your business? If yes, consider the following tips to make your leasing experience a success and hassle-free:

1. Check your business credit.  Some leasing companies only accept customers with solid business credit history.  Some businesses that have been in operations for quite a few years do not have credit history and have yet to start building credit.  Thus, whether you are an established business or a start-up business, it’s a good idea to check the prospective lessor’s requirements.

An impressive business credit rating will work to your advantage.  Many leasing companies will be willing to work with you and offer you their best deals.  On the other hand, if you have no credit or bad credit, you should look for leasing companies that offer special lease programs and thus, avoid rejection.

2. Do your own research.  The rates, fees and terms will vary from one lease provider to the next.  You should spend some time exploring the market to make sure that you choose the best business equipment leasing partner.   Read more

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How A Startup Business Can Obtain Financing Using Equipment Leasing

Posted on | January 2, 2012 | No Comments

The biggest challenge about starting a business is financing.  Many businesses have to work with a very small budget and if your business needs to have equipment, purchasing costs can be a major challenge.

Leasing business equipment is a great source of funds for many businesses. Both new business and established business can benefit from utilizing equipment leasing. Leasing requires a very minimal investment since most leasing companies only require one month or two months down payment. Through leasing, a business can preserve available credit lines for working capital or for emergencies.

Indeed, many successful businesses today have started from scratch and were able to grow their companies through the help of their equipment lease partners.  If you own a start-up business, what are the things you should know about this financing option?  Below are some facts about business equipment leasing.

Can you acquire a lease if you don’t have credit history?  The answer is yes. Of course, some leasing companies only accept established businesses but you can also find lessors who are willing to work with new and start-up businesses.  Yes, there are leasing firms that offer special lease programs – even for businesses with no credit history. Read more

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Equipment Lease Tips for A First Time Lessee

Posted on | December 19, 2011 | No Comments

According to the National Association of Equipment Leasing Brokers (http://www.naelb.org/), eight out of ten companies in the US lease some or all their equipment.  There are definite advantages in leasing business equipment and with the right leasing partner, a business owner will surely enjoy the benefits.

Are you ready to acquire a lease?  If yes, consider the following tips on how you can make the most out of leasing:

1. Start with the right leasing partner.  There are many companies in the market that offer different types of lease services.  The quality of service may not be the same for all so it’s important to do some research, and check the lessor’s background and reputation.  It’s best to choose a company with proven experience in the leasing trade.

2. Choose a program that fits your business.  Before signing up for a lease, it’s important to choose a program that’s right for your business.  Business equipment lease financing can be categorized in two basic programs: finance and operating leases. Read more

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Starting a Business Through Equipment Leasing

Posted on | December 12, 2011 | No Comments

Financing can be considered as one of the toughest challenges in starting a business.  Many successful business owners had to work on a limited budget.  Through careful planning and preparation, they were able to grow their businesses from scratch.

One way to minimize the start-up costs and begin the business operations at the soonest possible time is to lease equipment.  Purchasing business equipment can eat up a large percentage of your capital and might leave you with very little cash to sustain the operations.  Through leasing, you can reserve your available cash for managing the business and obtain all the equipment necessary to operate.

Aside from preserving the business budget, leasing equipment offers other advantages.  For one, acquiring a business equipment lease is much easier than acquiring a loan.  Due to the greater risks involved in extending business loans, banks and lending companies typically impose strict requirements making it difficult for a start-up business to get an approval.

In fact, even a business that has been in operations for more than 2 years can still find it difficult to get a loan without an impressive business credit history.  Most business loan providers will decline your application if you do not have a solid business credit history to back you up.

On the contrary, the application process in acquiring a lease is so much less-complicated.  True, some leasing companies require businesses to be at least 2 years in operations but there are special lease programs for start-up and new businesses from zero days to 2 years old.  The specific requirements may vary from one lessor to another but you should expect to be asked to submit a business summary, equipment invoice, personal financial statements, and personal income tax returns for the last 2 years.

Leasing equipment is also a good way to establish and build business credit history.  Of course, you should make sure that your leasing company reports to a major business credit bureau like Dun & Bradstreet.  Register for your D&B number online as soon as your business has officially launched.  If your leasing company doesn’t report to D&B it’s a very simple process for you to take the steps and have your lease reported yourself.

Tips For Faster Start-Up Lease Approval

Look for the right leasing company.  Keep in mind that not all equipment lease providers offer leasing services for new and start-up businesses.  Check the lessor’s requirements before taking any action.

Do not submit multiple applications.  Refrain from submitting multiple lease applications to different companies just to see which one will grant approval.  Instead, do your research first and submit an application once you are certain that you’ve found the right partner.

Do submit supporting documents.  It’s a good idea to provide an executive summary and a well-prepared business plan along with your equipment lease application.  Doing so can significantly improve your chance of getting a quick approval.

Do check your personal credit report.  As the owner of the business, your personal financial background will be evaluated.  Prepare to submit your personal financial documents and income tax returns for the last 2 years.  Check your credit report to make sure that there are no errors which could be pulling down your score.  If you have credit problems, make sure the leasing company you choose to work with not only have programs for new businesses, but also people with credit problems.

About the author:

Lai Castillo is an equipment leasing broker that specializes in getting start up equipment leasing and providing articles in finding solutions for Leasefunders.com. For equipment lease application visit leasefunders.com.

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