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Start up business financing is a rather specialized form of financing. Not all banks and financial companies will work with a new business because they are considered high risk. So as a new business owner seeking financing, the first question you should ask your prospective lender is if they finance startup businesses! Don’t start filling out the application until you know for sure!
Many of our clients who find us online have multiple credit inquiries from banks and finance companies that DO NOT finance startups. They should never have filled out the application since all they ended up doing was getting a denial AND having their credit score drop from the multiple inquires.
No matter what kind of start up business financing you are seeking, these are the basic pieces of information you will need.
Before you submit your equipment lease or small business loan request, make sure you have checked your credit! Don’t wait until you are at the bank to find out there are errors on your credit report. Make sure you pull all three credit reports and all errors have been REMOVED – — not in the process of being removed, but removed completely from your credit report. Telling your equipment leasing broker or small business loan broker that it WILL be fixed won’t be good enough. They can only go with the information provided to them at the point when you apply.
Keep in mind that equipment leasing is one of the highest rates of approval of all the different forms of business financing. So with a little bit of planning and research, you should be able to obtain an equipment lease despite having bad credit.
First make sure the leasing company you are working with has a bad credit financing program. If you have credit problems you will need to prove that you are now capable of making your lease or loan payments on time. You need to be upfront about your credit problems. Be ready to submit a letter of explanation with your application. Also be prepared to pay a larger security deposit and higher rates than start up business owners with good credit. Some finance companies will let you have a co-signer. If so you will just need to find a friend, family member or business partner with good credit to be on the lease or loan with you.
You can also offer additional equipment or property you own as additional collateral.
If you are trying to get approved for a small business loan, keep in mind that not all loan programs are open to bad credit. So again, do your research. Be prepared with a letter of explanation. And be prepared for higher interest rates and security deposits.
Don’t forget to start building your businesses credit. As a start up business, lenders will be looking at how you handle your personal credit in order to approve you for financing. Once you have that financing in place, its up to you to start having these lines of credit reported to the BUSINESS monitoring services. The biggest and most used of these services is Dunn and Bradstreet. Experian and Equifax also have business credit report services. Set up accounts with all 3 and start building your business credit!
Start Up Business Basic Guide – This checklist will help you organize your startup business launch
A sale leaseback is a financial transaction between a business owner who owns VALUABLE business equipment and a leasing company. The business owner uses the equipment as collateral for a working capital loan or to purchase more equipment. The amount given thru an equipment sale leaseback is based on the auction value of the equipment. This type of loan isn’t based on the business owners credit.
Equipment Sale leaseback financing is a form of secured business loans. Many businesses use equipment sale leaseback financing when for whatever reason, be it a low credit score or current financial situation. The banks are turning down their request for financing. It allows business owners to use assets they already own to obtain new assets or much needed working capital. Sale leaseback financing can be obtained fairly quickly too. So its great for un-expected expenses.
All types of businesses are eligible for sale leaseback financing. From brand new start up business to well established business. Approval is based on the value of the equipment. Not the time in business or current financial situation of the business.
Having a high credit score is not a requirement for approval. You must have some form of credit, someone with no personal credit couldn’t get approved. But past bankruptcies, low credit scores and recent collection or late payments are not a problem.
Generally, any equipment that can be sold for a good price and quickly at auction. Such as “yellow iron” (construction equipment) industrial machinery, trucks, and heavy machinery. What most lenders will not lend against are very specialized equipment, office furniture, computers, and any type of collateral that basically won’t sell well at auction. All equipment must be in working order.
If you don’t own the equipment, you can’t use it in a sale leaseback. If you own it, but used it as collateral on another loan, then it can not be used. In most cases it can’t be used for a business acquisition EXCEPT if the prospective new owner is investing a significant amount toward the purchase price of the business.
To apply you will need an equipment lease application, and a list of the equipment to be used as collateral. The list must include the year, make and model of the equipment. When you purchased it and if you purchased it new or used. If you are using a sale leaseback as part of a business acquisition we will need the financials of the company you which to buy along with the above info.
Banks, along with equipment funding lenders, use the following to assess loan applications: Income, Credit, Character, Capability and Security. But while banks look at little-to-medium size businesses from a Fortune 500 view, applicants are seen by equipment funding businesses from a small business outlook, a more “common sense” approach to financing.
First thing we look at is how you pay your bills. As a small equipment financing business. We work with a lot of new businesses owners. They attempt to apply for an equipment lease using their EIN instead of their social security number. And while equipment leasing is a type of trade line that will ONLY appear on your business credit report. The decision to approve your lease request will be based on your personal credit score.
In order to make a decision on whether to lend to a startup business will be based on the PERSONAL credit of the business owner. Even established businesses will find that their lender wants to look at their PERSONAL credit before extending credit. Unless you’re a large corporation, it’s unlikely that a small business owner will qualify for “corp only” credit approval.
Before applying for any type of business financing, you should check your credit score. Take a look at all 3 credit bureaus and fix any errors that you find.
If you have a 680 or above, you will generally easily get approved. But once you fall under a 680, you need to do whatever you can to bring up your credit score. One of the best ways to do so is to pay down your credit card debt. If you are using more than 30% of your revolving credit, your score can be lower just because you carry a lot of credit card debt.
If your credit is damaged, you should look into a good credit repair company. We recommend FES.
While we have many different types of business financing programs. One thing that remains the same, regardless of credit score. You have to show you have the means to make monthly payments. We get a lot of customers that don’t seem to understand that fact. I hear several times a week that if we extend the loan they would then be able to go “find” more clients, and expand their business. Then repayment will not be a problem. Your lender needs for you to be able to pay your lease or loan back on a monthly basis, starting immediately. What happens if you don’t get the clients you need in 30 days or worse, they don’t pay you on time. Your lender may be forced to repossession process.
How can you overcome this potential deal killer? If you have clients already lined up to do business with you. Get letters written on your clients’ business letterhead stating their intention to do business with you and how much that will cost them. Your goal is to make your lender feel at ease about lending you the money. If you don’t have that, you can look for a co-signer. A friend of family member with strong credit and strong financials.
Additional security can also help you turn a NO to a YES. Especially if you have bad credit. Being able to provide additional security in the form of equipment, paid off vehicles. We have accepted real estate, cars, and even a yacht once!
Starting a new business, or thinking about it? If yes, then you may be confronted with the challenge of obtaining financing for your new business. Many new business owners apply for small business loans and are surprised when banks either turn them down flat, or are only willing to finance a small portion of the amount they are asking for. So how do small businesses get the both the working capital and equipment their new business will need to function?
Many start up businesses are turning to start up business equipment leases to get the equipment their business will need to be competitive in their market place. That allows them to use any unsecured bank financing that they obtain for working capital. (more…)
Running a business, whether its a small business or a big business involves many challenges. One of the biggest challenges that start up business owners must face is finding financing for large purchases. For business owners who have sufficient working capital, gathering all the necessary equipment needed isn’t a big problem. But for those who work on a limited budget, purchasing equipment could mean using most of their working capital.
Financing can prove to be a big obstacle in industries such as manufacturing that require expensive specialized machinery to get jobs done. If you are a start up business owner in need of manufacturing equipment, the cost of that equipment can be prohibitive. While you have lots of potential business. The banks are worried that as a start up, the risk of your closing your doors within 2 years is very high!
Obtaining a large equipment lease of $100,000 on or more, on 1 lease is extremely difficult thing to do. Ordinarily, we can get this done on 3 equipment leases. Sometimes 4 depending on the pieces of equipment that need to be financed. The reason why, is that many start up banks will limit the amount of equipment financing to $50,000 for a new business. There have been times when we have a start up business with a business owner w/ excellent credit and strong financials where we have done it on one lease. But most of the time, its more realistic to expect that your lease request will be spread out over several leases. Thus mitigating the risk to the banks.
Obtaining start up business equipment financing for deals over $100,000 can be difficult and need to be handled with care. Here are a few things you need to keep in mind when you start looking for a company to help you.
If you are seeking a large lease, please feel free to contact us! We can help! Click here to apply online (secured form) or click here to send us an email! You can also call us at 1-888-308-7160 between 9 – 4 PST to speak with an agent!
Whether you are an online business or a regular brick and mortar business. You need to be accepting credit cards from your clients. Your processing equipment should not only accept credit card payments but also debit cards. (more…)
Having bad credit can make obtaining business financing almost impossible. Most banks want their clients to have good to excellent credit and strong debt to income ratios. If you fall outside of their rigid credit guidelines, they don’t care how strong your company is. The answer is no. That’s why more and more business owners have turned to equipment leasing.
If you have bad credit, you’ll be glad to know that there are business equipment leasing companies that offer lease programs that are especially designed for business owners with low credit scores.
Before applying for a lease, check your credit report and make sure that all your credit problems are already in the past. See to it that all your debts have been paid and that you presently are in good standing with your creditors. If you have a record of bankruptcy, most leasing companies will reject your application if the bankruptcy is recent or has only been discharged for less than 3 years.
Be prepared to submit a written explanation as to the negative remarks in your credit report. In the same letter, it would be wise to point out the steps you have done to improve your credit history and to avoid credit problems again. OF course, you will need to prove that you are capable of paying your lease through submitting several months of bank statements and /or your most recent tax return.
Before submitting your application to a leasing company, it’s very important to make sure that this lessor accepts applicants who have bad credit. When I was working for the bank I was always surprised by how many applications we got that didnt’ meet our most basic of requirements. When you are looking for specialized financing such as bad credit equipment leasing or even start up business equipment leasing. You need to make sure the finance company you are working with accepts your type of deal!
I recently had a start up business with great credit that we almost had to decline because of excessive credit inquiries. When I asked him why he had so many, he said it was because he applied online to a lot of places and got turned down due to the fact that he was a start up business. His credit score had dropped close to 30 points due to excessive inquires.
When you start off having bad credit, you don’t want to risk lowering your score. Take the time to call or email your prospective lender before submitting a credit application.
Generally, leasing companies will require the following:
Having bad credit doesn’t mean you won’t be able to obtain financing. The rates will be higher than what is offered your good credit counterparts and the bank may only be willing to finance you for 36 months instead of 60 months. But bad credit equipment leasing is attainable for most business owners.
Here at Leasefunders.com we specialize in bad credit equipment and start up business equipment leasing. If you would like to talk to one of our reps, please feel free to call us at 888-308-7160 . If you are ready to apply then feel free to download our equipment lease application by clicking here or apply online using our secured online equipment lease application!
About the Author
Equipment leasing is a solution for construction equipment financing that can benefit many businesses. There are a number of advantages to choosing to lease your new construction equipment rather than obtaining a loan to purchase it outright. These include:
Another benefit of construction equipment leasing is that there are many types of programs available, so you can choose the type that is the right fit for your business needs. Some of the most common types of leasing agreements include:
An Equipment Sale Leaseback is EXACTLY what you need! If you already obtained construction equipment financing or purchased a piece of equipment outright and find yourself strapped for cash, a sale leaseback can help you gain access to working capital. With this type of agreement, you sell the equipment to the leasing company and receive cash up-front. Then, you make monthly lease payments to continue using it. Normally, these agreements include the option to purchase the equipment back at the end of the lease.
For more information about lease options for construction equipment financing, contact us at 888-308-7160 or send us an email
Ready to apply now? Click here for our secured online equipment lease application or download our application here
Vendor financing is a tool used by equipment dealers to obtain financing for their clients. If your business involves selling equipment to business owners, then you should consider looking for an equipment lease financing broker who can supply you with all several different equipment leasing programs to help you get your clients financed.
In this article, let’s talk about the basic facts that you need to know about this method of leasing and how it can help your own small business.
Companies that sell business equipment often seek out equipment financing companies so they can have a means getting those clients financed. Many equipment dealers use these leasing programs as part of their sales arsenal. Everyone knows its easier to sell a $300 payment instead of a $15,000 cash sale. Equipment leasing programs allow dealers to do just that. Sell the payment. Then of course there are numerous benefits to the clients that choose to lease their equipment. But we will leave that for another article! Bottom line, equipment leasing offers a way for the equipment vendor to increase their sales.
By being able to provide financing to their clients. An equipment dealer gains the additional advantage of being a one stop source to their clients. Every salesperson hates having to see a potential sale walk out the door. If you don’t have the means to provide financing for your clients you are allowing them to walk out the door and into the showroom of an equipment dealer that does! Equipment leasing helps you close the sale immediately! .
Companies that offer vendor leasing services may offer different financial packages to suit the demands of their vendors. If you are in a seasonal business, make sure your leasing partner can offer your clients financing that is repayable only during the seasons they work! If you work with a lot of businesses, make sure they can work with start up businesses.
Interview your leasing partner and make sure they can finance the type of equipment you sell. Learn about their programs and watch your sale skyrocket!
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 more information on our vendor leasing programs or for an overview of all our programs, please visit leasefunders.com.
With the cost of business equipment on the rise, many of today’s business owners are looking for alternative ways that they can get the equipment they need without having to empty out their business savings accounts or mortgage their homes. For a typical automotive repair shop, the necessary equipment can run almost $100,000 and if you are starting a construction or other such heavy equipment company, multiply that total by more than 10! (more…)
There are numerous financial tools available to help entrepreneurs fund and grow their businesses. This is a positive thing, but such a vast array of options can make it difficult to determine which tool best fits your particular funding requirements. Below is a list of things to consider as you choose the best business financing method for your business.
We all know that marketing is the key to having a successful business and the auto repair industry is no different. Having the right marketing campaign in place can mean the difference from having full bays to having technicians sitting around playing cards.
When developing a marketing plan for your new auto repair shop, you have to remember that the repair industry is different from everything else out there. Bars, restaurants and grocery stores will always have business because they are things that people think about every day. We need to eat so we go to the store or we take the family out to a restaurant from time to time. (more…)
Automotive shops are changing all the time and if your repair shop is going to keep up and stay profitable, you are going to have to change as well. Staying on top of current trends in the industry is one sure way to stay competitive and ensure that your business gets the customer base it needs to stay open. The five major trends that researchers are seeing in the industry are focused on not only the repair shops, but the technicians as well.
More and more people now days are keeping their cars longer and avoiding the new car lot altogether. This means less business for the automakers but more business for a reputable, well-equipped shop. A good car repair shop can get more business than it can handle ensuring more profits and more business in the future.
There are many things that consumers are looking for when choosing an auto repair shop and making sure you fit their needs will also ensure that you get their business. Some of the features consumers are looking for in an auto repair shop are: (more…)
Running an effective auto repair shop is something that can benefit your customers, your employees and yourself all at the same time. Customers like taking their cars to shops that have knowledgeable employees, good service and competitive rates. To achieve these standards takes effort on your part but will pay off in the end in added profits and a much larger customer base.
Below are some tips that can help you run your auto repair shop more effectively and much more successfully.
Because the macroeconomic climate has improved so much since the end of the national recession, small business owners can begin making plans to obtain small business financing for expansion purposes again. Banks and lending institutions are more amenable to lending now that the economy has shown so much recovery, so the financial forecast for small business is positive.
One important step to take is to update your business plan and your financial projections in preparation for sharing them with banks and lenders. Even if you don’t want a small business loan, it is a good idea to obtain a small business line of credit (LOC) now anyway in case of future financial urgencies (for example, unplanned and premature equipment breakdown) or a temporary cash flow strain. (more…)
You finally got your startup off the ground, you’ve had a few sales, been in business for several months and now you want to grow, but you’re not sure what steps to take next to ensure success, especially when it comes to small business credit and financing.
Here are some tried and true small business financing tips to help you become the next small business success story.
So you’ve decided to open your own automotive brake repair shop and you think you have a pretty good handle on it? You know what you are doing, have your certification and maybe even already have a good location for your shop. Congratulations! The hard part is over, now all you need is a good set of tools, a brake lathe, a vehicle lift, some specialty brake tools and, if the car is a modern one, you are going to need a scan tool so you can scan and read the ABS codes. It seems like a long list doesn’t it? It is a long list and the equipment you need to stay competitive is going to be expensive, usually around $12-15,000.
There are more vehicles on the road now than at any other time in the nation’s history. Business is booming for auto tire centers and they have the potential to reap substantial profits, but only to the degree that they are capable of meeting the full range of their customers’ needs.
To be a successful tire center owner you need to have many things besides a strong will and the willingness to put in long hours to get your business off the ground, you need to have the right equipment and you need to have a good-sized inventory of tires and other parts to do the job right. (more…)
Every day we see more and more motorcyclists out on the roads. Maybe they are riding to save money, help the environment or just to have fun. No matter what their reasons are, motorcycle repair people are going to be needed when those bikes break down.
Owning a motorcycle repair shop is one of the best ways to have a career and enjoy your hobby at the same time. There is a lot of money to be earned in the motorcycle industry and repairing them is obviously the most stable way to make a living. (more…)
Many of us have seen at least one in our lives and many more of us have been involved in one. I’m talking about a car accident. Statistics from National Highway Traffic Safety Administration state that a car accident occurs in this country at a rate of one every 12 seconds. That’s a lot of cars that will need to be put back together and sent on down the road. Maybe that’s why you got into auto body repair in the first place or maybe you just like the artistic side of it, taking something that is damaged and skillfully making it beautiful again. Whatever your reason, (more…)
As a small business owner, you need a steady flow of working capital to help fund expansion and growth, including hiring new employees, buying or leasing equipment, ordering bulk materials in advance of manufacturing goods and other business building activities. Unfortunately, if you are like a lot of entrepreneurs, you probably have average or bad credit, and bank loans are tough to obtain, even if your credit is fantastic. You might find yourself asking, is there any kind of bad credit business financing available to help my company advance to the next level? The good news is the answer to your question is a resounding YES. (more…)
When it comes to your credit score, it can often be a mystery to why you may have a low score. Luckily, there are plenty of ways to increase a bad credit score even if you can’t pinpoint why it is low or feel like you do not have the means to increase it. Follow these 8 simple steps to get your score back on track, especially if you are in need of bad credit business financing. (more…)
According to 800Hours.org, as of April 2014, “the total value of the roughly 634 startups that have passed through Y Combinator is over US$26 billion.”
Out of that same data, it was estimated that founders earn $50,000 roughly and can still increase once their business has picked up.
With these figures and numbers, it is no wonder that more and more people want to start their own business. There’s that possibility that they can be the founders of next big thing that hit the market.
But not everyone is necessarily cut out for it. It takes a ton of dedication, lots of hard work, and an unbelievably amount of stress. Aside from the woes of start up business financing being difficult to come by, there are a lot of emotions involved during the ups and downs of the first few volatile years.
Starting a small business is not an easy task. It requires a ton of hard work, dedication, and focus. For many it may be difficult to get started, but keeping in mind the very basic requirements can save you some grief.
First and foremost, you must locate a business opportunity. Ideally, this is a little more thought out than you thinking that your mother’s spaghetti recipe is so tasty that everyone would buy it. For those without an idea already, it’s time to really test the waters with what you’re passionate about. For those with an idea of where their specialties and connections lie, a business opportunity is likely to present itself to you over time. (more…)
When you have poor credit and getting lending is hard, it isn’t a horrible idea to allow friends and family to invest in the company or lend you money.
Keep in mind that even though this is family or friends, it is still crucial to treat this as a business deal and have everything well laid out in writing. (more…)
Debt can become a heavy burden on you and your goals of business financing, especially when financial circumstances change. While being piled in with debt can be stressful, there are worst ways to pay off debt that people commonly use that you should avoid, especially when you’re dealing with financial security down the road. Avoiding these methods may make it harder to find an immediate solution, but in the end you will save yourself a lot of headache by seeking alternate means if possible.
Even business owners with bad credit can find loan availability with unsecured small business loans. These work as a type of advance on any upcoming sales made by credit cards. The qualifications for this type of loan are pretty simple.
You must operate a company that accepts credits cards, such as a retail shops or restaurant or other service related industries.
The lender will require copies of any leases, six months of previous bank statements, and your credit card statements. (more…)
Starting a business involves a lot of planning and dedication. Start up business financing can be difficult to secure if you’re not prepared to pitch your ideas to the right people, and if it turns out you try to pitch and fail miserably, it may be even harder trying again in the future. So when considering expanding as an entrepreneur and business owner, there are a few things you should keep in mind.
When you need business financing, one of the most obvious routes to go is a secured small business loan. Unlike other loans, a secured loan is going to be available to almost anyone because it requires a certain amount of collateral.
As long as there is some high-value property available for collateral, you’ll most likely get a secured small business loan. This collateral can be anything from the businesses inventory, to equipment, to the accounts receivable for your company.
However, the risk involved is that defaulting on the loan means the lender now owns that collateral, which potentially means they’ll take any of your businesses earnings.
On the plus side, the interest rates will generally be lower than other financing methods since there is collateral and therefore less risk to the lender.
Check out our infographics below: (more…)
Working capital is the figure calculated by subtracting the current amount of liabilities your company has with the current assets available. Liabilities, in this case, include any items you’re spending money on, where assets refer to cash in the bank.
Working capital allows the business to continue functioning between receiving payments and buying new product. As such, it isn’t uncommon for a business to find itself needing a bit of extra working capital to hold them over until the net profits are available from previous accounts. Luckily, there are several common methods that can finance working capital for a business. Let’s discuss these briefly. (more…)
Small businesses across America tend to need some type of equipment to make things run smoothly. While many might assume it’s better to purchase these items, the truth is that there are a lot of benefits to leasing equipment that often go under the small business owner’s radar.
Not only is this needed to handle any arising expenses, but having a healthy record of working capital will also make it easier to take advantage of offerings from financial institutions, such as loans and other types of services that require good credit. Naturally, keeping plenty of working capital around may be difficult for a budding business. But there are some things you can do to help increase your working capitals, so let’s discuss them. (more…)
For a start up business, applying for a bank loan can prove to be difficult especially for those with no business credit history. The first question you should ask your prospective equipment lease broker is, Do you have a program fro start up businesses. That simple question will save you a whole lot of time!
Who Can Lease
Both start up and established businesses can qualify for an equipment lease. In fact, this method of financing is being implemented by small businesses and large corporations. Equipment leasing is not just known for its tax benefits, but also the ease of being approved. Making it the method of choice for many start up businesses that need to preserve as much of their working capital as possible.
Why Lease Equipment
If you are planning on getting into the restaurant business, one of the biggest challenges you will face is equipment financing. Setting up your own restaurant demands a considerable amount of cash. For one, you need to invest on restaurant equipment such as stoves, grills, gas range, freezers, tables, seats, POS system, flatware, computer, etc. Think about how much start-up capital you will need to be able to buy all the necessary equipment and furnishing.
True, you can apply for a business loan, but in a high risk industry such as a restaurant, but if you spend all money on equipment alone, there may not be much left for other expenses such as marketing, supplies, and hiring workers. Is there an alternative financing option for aspiring restaurateurs? Rather than purchasing all the equipment and furnishing your business needs, why not consider business equipment lease financing?
So you are starting an auto repair shop but don’t know what to do?
Either you have a love for cars or just like to work with your hands. Either way, becoming part of the $130 billion a year industry isn’t as easy as buying some tools and hanging up a sign. To open an auto repair shop you must first have a well devised plan. No matter how large or how small you decide to start out, a good plan will mean the difference between staying in business and going out of business in a few short months.
Did you know that you and your business can take advantage of the tax benefits of equipment leasing? In the past this form of financing was only available to large, well established businesses. Now more and more equipment lease financiers are seeing the value in helping startup businesses. While the risk is high, if we are ever going to be able to dig our country out of the financial mess its in, we are going to need to help small and startup businesses.
Equipment leasing is great for startups trying to preserve their working capital. While equipment leasing companies have loosened up their credit requirements, many banks have not. By leasing their equipment a start up business can preserve its working capital . In addition to the money saved by leasing your equipment instead of buying it right away, there are also a lot of different tax breaks you can tax advantage of. Leasing your equipment can also be the first step in the process of building credit for your business. (more…)
Equipment leasing comes in many shapes and sizes. Many companies have found leasing to be the best way to finance their business, whether they are a new business or established. All businesses require equipment to run properly. Some equipment loses its value quickly. By leasing this type of equipment you can return at the end of your lease term and get the latest version. Equipment leasing is based on many factors, mainly the age of your business and your credit. The first step to getting approved is assessing your businesses needs and financial health. Then you match your business to the appropriate Equipment leasing company (more…)
Are you a start up business needing an equipment lease? Equipment leasing is now available for new businesses as well as well established businesses. Roughly 30% of businesses get their equipment through some kind of equipment leasing service. The kind of flexibility that comes with equipment leasing is hard to match with any other way of getting equipment for your business. Here are nine tips to consider when obtaining an equipment lease for your small business: (more…)
The current economy has unfortunately brought out a lot of bad people. In the last year we have seen fraud on both sides. Some so called brokers and even on applicants for equipment leasing.
Many businesses want to take advantage of the benefits of equipment leasing but they don’t
qualify. This is were scammers come in. They promise to help people who can not get approved in the traditional sense. Since equipment leasing does have flexible credit and time in business guidelines, business owners are taken in by these scam artist.
With the advent of the internet you can learn a lot about a company with a simple google search. Google your prospective broker and make sure that they have a good reputation. If you don’t find anything, don’t be alarmed. Equipment leasing is still a mostly offline business. Also since some brokers specialize in equipment leasing for businesses with bad credit, its not surprising that business owners are not jumping up and writing reviews about how there broker helped them despite their terrible credit. (more…)
Many business owners are looking for new ways to save money. Working capital is hard to come by unless you are a well established business with owners who have perfect credit. The days in which obtaining an unsecured loan easily have past. We used to do unsecured loans for all types of companies and credit situations. Now we can only do them if you have a credit score of 700 and above.
Finding new ways to finance a growing business is now paramount. More and more companies have decided to move towards lease financing in recent years because there are so many different assets and vehicles available under these circumstances. There are benefits to be found on both sides of this kind of deal, so it is definitely something that is available to almost every business own in the US. There are many different benefits of leasing, and you should take a look at these benefits if you think that leasing could be an option for you. (more…)
Todays economy has made many small businesses seek new ways to find ways to finance their business. While equipment leasing is not “new” and has been around for a long time. Many small business were unaware of it. Most business owners experience with leasing begins and ends with their cars! Its only been recently with traditional modes of financing becoming so hard to get approved, that leasing has become more popular. Any business owner who is trying to find a way to save some money should definitely look into leasing their equipment in the future. (more…)
Looking for ways to preserve your companies working capital? Unsure of how you will buy the new equipment your company needs to stay competitive, and still have enough to expand your company? Equipment leasing can do that for you! Equipment leasing allows you to buy the new equipment you need quickly and with a very low down payment. By making the monthly payments you are getting the use of the equipment without having to have paid for the equipment upfront. Thus allowing you to put your working capital to better use, like advertising your business or expanding your work force. (more…)
One of the main problems that people run into when they are first starting their business is that they do not have a lot of money to pay for office space or the equipment that is required to run their business.
One of the advantages of leasing is that it helps business owners get started right away without the difficulties involved in processing a SBA loan or refinancing your mortgage. With an equipment lease, you can easily lease to own items such as computers, fax machines and printers. There are many advantages to leasing equipment instead of using your working capital to buy it cash.
Here are the top 5 advantages for leasing your office and technical equipment (more…)
Many entrepreneurs have to juggle with cash shortages while setting up and growing a business. However, you can spend less by leasing equipment instead of buying. Business owners all over the world operate in an aggressive and highly competitive environment. Conserving working capital can give you an edge over competitors. It is not wise to buy expensive equipment which will be obsolete within a short time. This is true for businesses operating in the high-tech sector where technological advances happen at a breakneck speed. The average time for a lease will run for about 2 to 5 years after which you can update to better equipment. The following are some of the ways you can improve business cash flow by leasing. (more…)
Running a business is a capital-intensive process, and figuring out how to maximize profit is important. In most businesses, you need some kind of equipment in order to get started. If you do not feel like investing thousands of dollars in buying equipment, another option to consider is equipment leasing. This strategy can provide you with a number of benefits compared to buying equipment outright.
How it Works
The basic idea behind equipment financing and leasing is simple. You pay monthly for the use of your business equipment. The equipment leasing company still technically owns the equipment and you are just renting it from them. You keep the equipment for a specific amount of time and then turn it back over to the leasing company at the end of the lease. If you want! You can choose to keep the equipment for a low buy out option. [Related Article: Equipment Leasing – A Practical Method of Business Financing] (more…)
Business leasing can be a great option for owners that needs to acquire equipment but are on 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. (more…)
The biggest challenge for a startup 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. (more…)
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.
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. (more…)
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 equipment lease 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. (more…)
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. (more…)
Having bad credit 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 the financing needed to obtain the equipment you need. (more…)
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. (more…)
Choosing an equipment lease 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. (more…)
Business equipment leasing is a cost-efficient way to finance a business. Learning the right strategies can help you cut back your equipment leasing costs, so you can save your business budget even more. Check out the following tips on how you can spend less from your next equipment lease:
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. (more…)
When it comes to financing, business owners today have a number of options to choose from. Aside from acquiring traditional business loans from banks or commercial lenders, it is also possible to seek out short term loans to cover for small business expenses. Small business credit cards are also increasingly becoming popular as these plastic credit lines can come in handy when unexpected expenditures arise.
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 and 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. (more…)
Equipment leasing can be very helpful for both start-up and growing businesses because it offers business owners the opportunity to acquire the best equipment available in the market even with a limited budget.
Indeed, purchasing equipment- whether new or second-hand equipment, may require a new business to invest to much of its working capital into buying the equipment it needs. On the other hand, leasing business equipment involves very minimal cost so that the available cash can be used for other purposes such as in business marketing, hiring manpower, training employees, renovating or improving the business location, etc.
What’s great about leasing is that you can actually choose the state-of-the-art equipment which if you tried to purchase it could prove to be to expensive, thus forcing you to buy cheaper maybe even outdated equipment. (more…)
Regardless of how big or small your business is or how long your business has been in operations, equipment lease financing is worth considering. In fact, many successful corporations today lease equipment to cut back costs, decrease their tax liability, stay on budget, and improve the use of their working capital.
How can leasing business equipment enable you to save money? Purchasing business equipment often requires a considerable amount of money and if you have a limited budget, you might have to invest a large portion of your working capital to purchase your equipment. If you are “saving up” to buy that new equipment, you may even miss great business opportunities due to the fact that you do not have enough working capital to purchase the equipment when you need it. (more…)
Business owners must constantly find ways to enhance their cash flow and find viable financing resources to support their companies. One efficient business financing option is called account receivables factoring or cash advance factoring. In this article, let’s take a closer look at how the process works and how it can benefit your own business.
When in need of cash, a business owner can sell its accounts receivables to a factoring company. Usually, receivables are payable within 30 to 60 days. Instead of waiting for your customers to send in their payment, you can sell your receivables to a factoring company to get immediate cash advance. In turn, the factoring company will take over the collection of payment from your customers.
Most factoring companies offer up to 80% cash advance from the amount of invoices submitted. Other lenders may offer a higher percentage, sometimes up to 95%. (more…)
An equipment sale leaseback program is a form of leasing where the business owner sells existing equipment in exchange for cash. The equipment leasing company buys the property and then leases it back to the business owner. The business owner now pays the leasing company the monthly rent for the continuous use of the equipment.
If you own a business and have purchased all the necessary equipment you need to start your company, then equipment sale leaseback can be a welcome option for you. How so? At any time you need extra cash to spend you can opt to do a sale leaseback and use your business equipment to produce cash, and still continue to use them for your business operations.
Being able to use your business equipment as collateral has many advantages. First, it gives you the opportunity to produce additional funds quickly and fairly easily. (more…)
All business owners are confronted with the challenge of financing their companies and for many of them, they are able to find practical ways to successfully fund their businesses. One way to save and stretch capital is to lease business equipment. Instead of spending a large portion of the business’s budget on purchasing equipment, leasing enables the business owner to use their available cash for other important business expenses.
What does it take to find a reliable business equipment lease provider? Read on and find out.
Not All Equipment Leasing Companies Are the Same
Not all business equipment leasing companies are the same. Some leasing companies exclusively cater to businesses that belong to specific industries. For instance, there are companies who offer leasing for specialized machines only, or for business that have been established for a certain amount of time only. (more…)
When a small business is in search for financial assistance, the first thing that comes to mind is a business loan. Today however, there is more than one way to finance a business. For instance, acquiring an equipment lease is a great strategy to cut costs and stretch the available budget.
In this article, let’s talk about the five essential steps on to applying for an equipment lease.
1.Know the needs of your company.
When it comes to managing a business, planning is an important step. If you are starting up a business, how much would you spend on purchasing materials and supplies? To utilize your start-up capital efficiently, you should know exactly what your business needs. (more…)
Do you own a small business? If yes, are you trying to find financing alternatives for your company? Equipment lease financing is a great option not just for new businesses but even for established businesses as well. Acquiring an equipment lease is generally easier and quicker which makes it an ideal option for many businesses. But what if you have past credit problems? Does that mean you cannot qualify for a lease? The good news is that there are leasing companies that offer special lease packages for business owners with past credit problems. Making it possible to get approved despite of bad credit.
Business equipment leasing companies that have special lease programs for people with bad credit, can not only help you improve your credit, but it will help you to start building credit for your business. Lease Funders’ bad credit leasing program requires that all credit problems be in the past, and you have started to rebuild your credit. We also require a letter of explanation about your credit problems. If you are a start up business (anything under 2 years in business) an executive summary will also be required. (more…)
If you are a start-up business in need of an equipment lease, there are steps that you can do to ensure the approval of your application. Take a look at this guide to equipment leasing to learn how to get a lease for you if you have just started your own small business.:
Know the lessor’s qualifications. Don’t waste your time evaluating lessors that are not interested in your type of business. Keep in mind that not all leasing companies provide services for new and start-up businesses (any business less than two years old) . If you submit your lease application to the wrong company, you might get instantly rejected. The good news is that you can find leasing companies that cater to new and start-up businesses. These are the leasing companies that you want to consider in your search. (more…)
Business financing is one of the most challenging aspects of starting business. Expenses are to be expected and you, as the business owner must find reliable resources to help keep your business growing. Fortunately, there bank loans are not the only source of financing for a business.
Secured and Unsecured Business Loans
The traditional way to finance a business – whether it’s a big or small business, is by applying for a loan. Business loans are provided by bankers, lending companies, and credit unions. An aspiring new business owner can apply for a secured business loan or unsecured business loan, depending on their situation.
A secured business loan requires the submission of collateral such as property, vehicles or business equipment. However, if submitting collateral is not a viable option, then an unsecured loan is recommended. While unsecured loans do not require collateral, banks tend to limit the amounts they are willing to finance since they represent a higher risk.
Starting a business can bring up many challenges for its owner, particularly when it comes to matters of financing. Investing on the needed equipment may require a large sum of money and if you are a business owner working on a small budget, you will need to find alternatives to purchasing new or even second-hand equipment.
This is where business lease financing can be the perfect solution. Instead of spending a considerable portion of your funds on purchase equipment, leasing gives business owners the opportunity to use their available cash flow on other costs or reserve it for future expenditures.
Equipment Lease – An Alternative to Business Loans
Indeed, acquiring a business loan is an option to gather the additional financing needed for purchasing equipment. Nevertheless, for entrepreneurs who have just started up their businesses, applying for a loan can be a rigorous process.
Whether you are a new business, a start-up business or an established business seeking equipment lease financing, following the tips listed below will make things easier for you and save you from unnecessary problems later on.
Not all leasing companies provide financing for all kinds of businesses.
Some lessors only deal with established businesses while other lessors may also offer lease programs for new businesses. Some lessors may strictly require good credit and you can also find lessors who have more lenient standards that accept customers with bad credit.
Some leasing companies also have restrictions on types of equipment they will finance. Usually these are considered “high risk equipment”. Examples of this type of equipment include restaurant equipment, vending machines, and ATM or vending machine routes. It’s a good rule of thumb to call the leasing company you want to work with and make sure they finance your type of equipment you want to lease.
Identifying a Good Equipment Lease Business Partner
Each year, many businesses are confronted with the challenge of finding financing to purchase equipment. While applying for a bank loan is an option, entrepreneurs often find that getting approved can be very difficult especially for start-up businesses. The good news is that there are leasing companies that offer equipment lease financing to help both big and small businesses face up to the challenge.
How can you choose the right leasing company? Considering the pointers discussed in this article can help you identify a reliable business equipment lease partner.
If you are planning to start your own restaurant business, one of the biggest challenges you may face is equipment financing. Purchasing all the equipment you need (stoves, grills, coolers, tables, chairs, cash registers, etc) is certainly a big investment.
Perhaps you may also think about buying second hand devices but don’t forget to consider the risks as used devices may be prone to breakdowns and you could end up shelling out more cash to get them repaired or replaced.
Angel investors can be individuals or independent groups that are looking for promising businesses to invest in. Angel Investors became very popular in the late 90’s and since then, has continued to be one of the most recognized means of business financing, particularly with small business enterprises.
Along with the advancement of technology, the business industry also moves forward. Today, the use of computers and communication devices are not just limited to larger corporations. Even smaller businesses and home based enterprises make use of IT equipment to manage tasks more easily and efficiently.
Needless to say, acquiring a computer system will require a considerable amount of budget. If you are a new entrepreneur, financing your business needs can be a big challenge. Is there a solution?
The Equipment Leasing and Finance Association reports that businesses in the US spend an estimated $200 billion on equipment financing – that includes larger vehicles such as commercial airplanes down to the smaller devices such laptops and computers.
Whether this is your first time to apply for equipment lease financing or you are planning to renew your contract, below are essential tips on how you can save money from your next lease:
What are the factors that should influence your decision? Below are some suggestions:
This is a crucial aspect when conducting your search. You need to find an equipment lease partner who will be willing to assist you not just in the processing of your lease application, but throughout your lease term.
According to The Equipment Leasing Association a large number of businesses in the US use equipment lease financing. The report shows that over $200 billion worth of equipment are leased by companies each year.
Are you a small business owner? If yes, consider the following tips on how you can save more from your equipment lease:
1. Choose the Right Leasing Company.
If you choose the wrong leasing company, you may encounter problems later on. For instance, there could be delays with the approval of your lease application or the equipment you ordered may not be delivered on time. There are lease providers that charge hidden fees and do not give a reliable service. To find the right lease provider, use the internet to shop around and check the company’s reputation and track record of service.
2. Choose the Right Lease.
Lessors offer varying business equipment lease packages. Compare the pricing, repayment options, and the specific terms of your chosen leasing company. Pay special attention to special conditions such as end-of-lease and lease termination options, obsolescence, etc.