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

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. Read more

Leasing Business Equipment with Bad Credit

Posted on | December 5, 2011 | No Comments

Having bad credit history can prove to be a handicap not just for consumers but for businesses as well.  Applying for a business loan is not easy as most banks and lending companies strictly require good or excellent credit.  If you have a problem with bad credit, your loan application can be rejected if you submit it to the wrong lender.

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?  Read more

Pointers About Small Business Equipment Leasing

Posted on | October 24, 2011 | No Comments

Small business equipment leasing programs provide businesses with an option to finance costs and save the company’s budget.  Instead of investing a large sum of money on purchasing equipment, funds can be reserved for other important expenses that require payment in cash.

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.

Other Related Articles:
Why Get A Small Business Equipment Lease
Using Equipment Lease to Finance a 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.

How to Choose the Right Equipment Lease Company

Posted on | October 5, 2011 | No Comments

Choosing an equipment leasing company may not be so easy when you are confronted with a lot of choices.  In response to the great demand for business equipment leasing, an increasing number of finance companies today are offering lease financing services to many businesses.

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. Read more

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