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.

Preserve your cash flow.  Equipment leasing involves very minimal investment.  Most leasing companies only require advance payment of one to two months and that’s all you need to pay when you apply for a lease.  Thus, you can preserve your working capital for other expenses and keep your credit lines open for emergencies.

Keep up or stay ahead from competitors.  It doesn’t matter if you are a small business or a new business.  Through the help of your leasing partner, you can use technology to your advantage to make sure that you can keep up with the competition or even stay ahead of your competitors.

The process is easy and quick.  Applying for a loan can be a real challenge especially if you own a new business or if you have credit problems.  Most banks will not grant financing if you do not have credit history or if you have bad credit.  Compared to loans, it is much easier to get approved for a lease and the process is quicker.  For businesses with bad credit or no credit, they can seek out leasing firms that offer special lease programs that match the particular needs of their business.

Be safe from the threat of depreciation and obsolescence.  Some types of equipment depreciate in value over time.  There are also types of equipment that becomes outdated or obsolete after only a few years.  Investing on these types of equipment by purchasing is a waste of financial resources – money that you can spend on other projects to enhance your business.  On the contrary, leasing business equipment keeps you safe from the risk of depreciation and obsolescence because it will be easier for you to replace or upgrade equipment at a less cost.

Enjoy special tax privileges.  Business owners who lease business equipment enjoy many tax benefits depending the type of lease acquired.  To be sure that you are enjoying all tax benefits you are entitled to, consult a professional business accountant about your privileges as a lessee.

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.

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.  

However, do not submit lease applications to multiple leasing companies just to compare deals as this will be bad for your credit.  Take note that each credit inquiry can deduct a few points from your credit score.  Furthermore, a lessor might be inclined to decline your application upon seeing too many inquiries in your report. You should only submit a lease application to the company that you think is your best choice.

3. Organize your financial information.  Most leasing companies will require the submission of financial documents.  You will also need to provide business tax returns for the last two years so make sure that you have all these documents at hand.  Aside from business finance sheets, you should be prepared to submit personal finance documents and personal income tax returns as well.

4. Improve your chances of approval.  If you have bad credit, remember to find a lessor who will be willing to work with you.  Nevertheless, if you have a record of bankruptcy, bear in mind that some leasing companies will only consider your application if you have been discharged for at least three years.

You can improve your chances of getting financed by submitting a letter of explanation along with your lease application, even though it is not explicitly required by the lessor.  What are the circumstances that lead you to have bad credit and what steps have you already taken to rebuild your credit?  Providing these details in your letter will ensure a prospective lessor that all your credit problems are in the past and that you are now capable to keep up with your lease payments.

5. Inform the lessor how leasing can help your business.  If your financial statements are not impressive, enclose a letter with your lease application and discuss how acquiring new or additional equipment will open up more opportunities and enhance your business.   This step will strengthen your chance of getting approved more quickly.

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.

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.

It would be extremely difficult to get approved by a bank if you do not have a solid business credit history to back you up.  On the contrary, acquiring an equipment lease is much easier and takes much less time than obtaining a bank loan.

In fact, you can establish business credit history and build credit by promptly submitting your monthly lease payments, and making sure that your payments are reported to a major business credit bureaus such as Dun & Bradstreet and Experian. After establishing your business credit, you will be in a much better position to apply for a bank loan.

A lot of leasing companies offer various lease packages.  The terms of repayment may also vary and a business can choose a program that complements its particular needs.  Flexibility is one of the many benefits of leasing equipment since business owners can choose a program that’s most favorable for them.

Therefore, before signing up for a lease, you should be well aware of the lessor’s terms and understand the demands of your own business.  And as with any kind of agreement, it’s very important to read the exact terms and conditions stipulated in the contract.

Be prepared to submit paperwork when you apply for a lease.  See to it that all the details you enter on your lease application are correct.  Providing false details to make your business look good will only get you into trouble.  Aside from your lease application, prepare to submit personal finance documents, your personal income tax returns for the past two years, a business summary and a lease proposal.

Avoid submitting lease requests to different business equipment leasing firms as each inquiry on your credit report can pull down your score.  Be sure to check the prerequisites as well as the lease program offered.  Conduct research and submit a lease application only once you have found the perfect lease partner.

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.

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.

A finance lease or a capital lease gives the lessee the option to own the equipment when the lease term ends.  This type of lease is recommended for equipment that does not become obsolete and will be used for a long term.

On the other hand, an operating lease or service lease are ideal for types of equipment that needs to be replaced or upgraded after a short term period.  When the lease term ends, the lessee can simply return the equipment to the leasing company without further obligations.

3. Check the prerequisites.  The specific requirements may vary from one leasing company to another.  The list of requirements may also depend on the business you own and the lease program you are applying for.  For example, if you own a new or start-up business, you should look for a program especially created for your business type and see if you meet the lessor’s criteria of eligibility.

4. Start with a short term lease.  A short term lease is recommended because it gives the lessee the opportunity to decide the next course action, depending on the business’s demands.  A short term lease period is especially advisable for a first-time lessee.  At the end of your lease term, you may choose to return the equipment, or renew another term with the same company.

5. Ensure business credit reporting. Does the leasing company report to a business credit bureau like Dun & Bradstreet?  Acquiring an equipment lease is also a good way to build up your business credit history and credit score but if your lessor does not report to the bureaus, D&B will not be able to monitor your payments.  Of course, you should strictly submit your monthly lease payments on time to build and maintain a solid business credit standing.

6. Read the fine print.  Spend time reading each and every statement of your equipment lease contract.  You should be aware of the exact fees you will be subjected to, particularly with regards to possible penalty charges such as late fees and lease termination penalty.  Understand the lessor’s terms with specific situations.  You should be well aware of your options when the lease term expires.

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.

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.

One financing option is equipment leasing.  If you’re in need of equipment, you can preserve your cash flow through leasing instead of purchasing.  The good news is that there are leasing companies that offer special lease programs for customers with bad credit.  By searching for these specific leasing companies, you can acquire an equipment lease more easily.

Typically, leasing companies that offer programs for bad credit require that all credit problems are in the past.  It’s important to make sure you have no past due charges in any of your business accounts.  Your report or credit history should also be free from tax liens and judgments.  However, for businesses with a record of bankruptcy, they may need to wait for at least 3 years after being discharged before they can apply for an equipment lease.

What can you do to ensure the approval of your lease application?  Consider these tips:

Be ready with an explanation.  Upon submitting your lease application, provide a written explanation regarding the negative item in your business credit report.  What are the circumstances behind your bad credit? If you have been through bankruptcy, what lead you to that situation?  This extra step will allow a prospective lessor to consider the circumstances behind the poor score.  It can significantly help you in getting a lease.

Prepare the paperwork.  Most lenders will want to see a financial statement , and up to two years of your personal and / or business tax returns. A prospective lessor will closely evaluate your financial information to make sure that you will be able to submit your monthly lease payments with any problems.  Remember, because of your bad credit history, you need to prove that you will be able to make the monthly payment.

Approach the right lessor.  Take note that not all leasing companies offer programs to businesses with bad credit history.  Submitting a lease application to the wrong lessor will of course, lead to a negative response.  Hence, it’s important to do your research carefully and approach the right lessor.

Do not submit multiple applications.  Be careful about shopping around for lease quotes.  Do not submit lease applications to different companies just to see which lessor will give the quickest response or which one will grant approval.  You should be aware that your credit score drops each time a lessor pulls your credit.  In addition, too many inquiries at such a short span time will only give rise to doubts and it could turn a yes into a no.

Be consistent with your monthly lease payments.  See to it that you will be able to submit your monthly lease payments according to your lessor’s terms.  Remember, a business equipment lease can help you create a good credit profile for your business.

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.

There are other advantages with leasing. These include quicker and easier process; the risk of obsolescence eliminated, and tax benefits. Lease payments or rental fees are considered as operating costs, thus, greatly reducing tax fees.

When you lease equipment, you have the option to return it to your leasing company at the end of your contract. You may also choose to keep the equipment through the “buy out” option at a low price.

If you purchase, replacing your old equipment will not be a practical choice because it will be expensive. Through leasing, the risk of the item being obsolete does not need to be a problem. You can replace your equipment with the latest model without having to spend a fortune. Yes, businesses can take advantage of the advancements in technology to enhance their marketing performance

What about the process of leasing? Compared to bank loans, applying for an equipment lease is much simpler. A bank loan can take a few months to complete, depending on your qualifications. Meanwhile, you can get an approval for business equipment lease within a day or up to 72 hours at the most.  The leasing process can be completed fairly quickly mainly depending on how quickly, you the business owner submit the required paperwork.

Who Qualifies for Business Equipment Lease?

What types of businesses can apply for an equipment lease? Generally, any type of business in any field or industry has the opportunity to acquire this form of business financing.

To avoid having your equipment lease request denied, you must check out the leasing company’s policies and requirements first before submitting your lease application. Some leasing companies only offer service to established businesses and businesses with good credit history. On the other hand, some lease providers have more relaxed policies and do offer special programs for new and start-up business and for business with bad credit or below average credit.

Keep in mind that submitting application to the wrong leasing company could result in a credit denial. Aside from being a waste of time, getting declined can also cause your credit score to drop.

Lease programs also vary depending on the need of your business. It’s a good idea to evaluate each program offered by a potential leasing company so you can choose the program that meets the demands of your company.

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.

Would you like to apply for a business equipment lease?  If yes, then it is crucial that you find the right leasing partner.  In this article, let’s talk about characteristics that you should look for from a business equipment lease provider:

Find a lessor that caters to the niche where your business belongs.  Some leasing firms exclusively offer lease financing to established businesses while others do offer equipment lease programs for new and start-up businesses.

Some companies only deal with large corporations so if you own a small business, then you should make sure that your chosen lease provider is right for you. There are leasing firms that only offer industrial equipment or heavy equipment.  But there are also one-stop shop companies that offer all kinds of lease financing services to all types of businesses, for all types of equipment.

Check the lessor’s credit requirement.  If you have bad credit, see to it that your preferred leasing company does accept customers who are credit challenged.  Some lessors are very strict when it comes to evaluating the customer’s credit standing. Your lease application can easily be rejected just because you did not check the lessor’s credit requirement.  If they do accept bad credit, make sure you submit a letter of explanation and any documentation to prove your point.

Compare at least three potential leasing companies.  You can search for possible leasing partners from the internet and you can also ask your business contacts for recommendations.  It is very important to take the time to do further investigation and compare lease financing packages offered by different companies.  Don’t forget to check the firm’s background and reputation.  This way, you can be certain that you will be making a wise choice.

Do not submit multiple lease applications.  You should not try your luck by submitting multiple lease applications to different companies at one time.  Doing so can badly hurt your credit score since each inquiry made by a potential creditor can cause your score to drop.  Having too many inquiries in your file can also send a negative impression to a potential lessor and instead of giving you an approval, a lessor may choose to decline your application.

Understand the equipment lease program.  Different equipment leasing firms may offer numerous lease programs.  The specific conditions and the repayment terms may vary from one lessor to another.   It is essential therefore, that you understand the exact terms and conditions of a certain lessor before submitting your lease application.  Thus, once approved, you can be sure that you will not be subjected to unreasonable terms, hidden fees, or unpleasant surprises during your lease term.

Choose a lease program that meets the needs of your business.  As mentioned, equipment leasing companies offer different programs.  Therefore, it is your duty to understand these available programs and find out which specific program is most suited for the current needs of your business.

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.

1. Choose a business equipment leasing company carefully.  A poor choice of a lease partner can prove to be costly.  For instance, if you submit your lease application to a leasing firm that does not offer services to businesses like yours, your application may get rejected.  The result is a delay with the processing of your lease which could have been avoided if you have conducted research before submitting application.

Make sure that the leasing company caters to businesses in a niche where you belong.  If you own a new business or a start-up business, look for a lessor that offers special lease programs for new and start-up businesses.  Remember each time a finance company pulls your credit, your credit score will drop.  Even if you are an established business hoping to be approved for an equipment lease in your business name only, many finance companies will still want to see the owners credit before approving a “corp only” lease.

2. Compare the lease costs.  You can request for a free pricing quotation from at least three potential leasing companies.  Spend time doing research before you pick your top three options.  See to it that the leasing company is licensed and has a good reputation in the industry.  After investigating about the lender’s background, you must then compare the rates and fees of the lease program.

3. Consider your business credit.  If you have credit problems, take note that some leasing companies will refuse to work with you.  You must look for a lessor that offers special lease programs for businesses with bad credit history.  Nevertheless, having bad credit can significantly affect the rates and fees of your lease.  As much as possible, try to improve your credit or raise your Paydex score before you submit your lease application.

If you really need to acquire business equipment lease at the moment, you must make sure that you do not have any outstanding debts with your present creditors.  Take note that your credit problems should be in the past in order to be considered.   If they are not, be prepared to submit a letter of explanation along with proof of your claim.

What if you do not have business credit history?  It is possible to find leasing companies who are willing to extend lease financing to start-up businesses and businesses with no credit history or have yet to build business credit.

4. Negotiate for a better deal.  You should always try to negotiate for a lower rate or easier repayment term before you sign up for an equipment lease.  If you have good business credit history and if you are managing an established business with an excellent reputation, you should definitely use these assets to your advantage to enjoy savings from your next lease.   Many leasing companies would want to work with you and would be willing to give you the best possible lease package they can give just to have you as a customer.

What if you have bad credit or no credit history?  Even if you have bad credit history, you should request for a lower rate than the initial offer.  If you own a start-up business, it will never hurt to try to negotiate for a lower lease price.

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.

However, there is another method of business financing which you may consider.  It is known as  equipment leasing.  Whether you own a new business / start-up business, leasing gives you the chance to save your available cash instead of spending it on business equipment.

If you compare the process of applying for a business loan and a business equipment lease, leasing is far less complicated and takes up much less time to complete.  While most banks and lending companies have very rigid standards in approving business loans, leasing companies are more lenient.

In fact, even new / start up businesses can easily get approved for an equipment lease by submitting application to the right lessor.  On the contrary, getting approved for a business loan can prove to be difficult for businesses that are still in the start-up stage or have yet to build credit history.  It can take several months to acquire a business loan while equipment leases can be approved in 24 – 48 hours and then paperwork overtightened to your business.

You can apply for an equipment lease online simply by visiting the leasing company’s website.  You will also discover online brokers who can help you find the right business equipment leasing partner.  Just be sure to do your own research and check the company’s background before signing up a deal.

Business Equipment Leasing for The Credit Challenged

True enough, equipment leasing is a practical option for many businesses.  For instance, if you have a problem with your business credit history, it might be extremely difficult to get your business loan approved.  Even if you have provided collateral, your chosen lender will surely take all the necessary measures to make sure that you will be capable of the loan repayment.

What are your chances of getting approved for a business equipment lease?  You will be glad to know that some leasing companies offer special lease programs for businesses with bad credit history.  In fact you can even rebuild your damaged credit through timely lease payments as soon as your lease application gets approved.

The important thing is to make sure that all your credit problems are in the past.  If there are still unpaid debts in some of your accounts, pay these debts first before applying for a lease.  Once you are in good standing with your creditors, you can be assured that your lease application will be approved.  If you cannot pay off these debts or will not because the debts are fraudulent you must be prepared to submit a letter of explanation along with your application.

Last but not the least, you should check the leasing company’s credit requirements to avoid an unnecessary pull on your credit report. Take note that some lessors exclusively offer leasing services to businesses with good credit standing.  If you are credit challenged, you should only apply for a lease from a lessor who accepts applicants who have had 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.