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.
Understand at what stage your business is
- Are you a startup business (less than 3 years time in business) or established?
- Do you have good or bad credit?
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.
Are there any equipment type restrictions?
Some leasing companies also have restrictions on the 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.
Research your finance company before you apply
It’s very important to understand what the finance company requires BEFORE you send in your req for an equipment lease. This is to prevent unnecessary rejections which can lower your credit score. Keep in mind that each time you submit a lease application, the lease company will check your credit report and all inquiries will be reflected in your file.
What kind of buyout do you want?
When you take out your lease your finance company will ask you. Do you plan on returning the equipment at the end of the lease or do you want to own it? If you plan on returning the equipment you might want to take out an FMV lease. The monthly payment will be lower than opting for the $1 buyout purchase option. The $1 buyout basically states you can own the equipment after making all your agreed-upon payments and $1.
Watch out for companies with evergreen clauses
Leasefunders.com DOES NOT use evergreen contracts. You need to make sure whomever you choose to work with, do not have this clause in their contract. An Evergreen clause means that if you don’t remember to contact your equipment financing provider prior to the lease expiration date, the contract automatically renews. Let’s say you are on a 60-month lease. And your contract states you need to contact the finance company 60 days before the end of the lease or it will automatically renew. You will be responsible for 1 more year of payments! If you do find yourself in a situation where you have an evergreen clause, make sure you have set up enough reminders to make sure you MAKE THAT CALL!
Have a clear idea of your businesses needs
Choose a lease program suitable to your needs.
- How long of a lease do you need?
- What kind of buyout do you want?
- Are you looking for new or used equipment?
As we’ve said, leasing companies offer several lease programs to match the demands of different businesses, depending on their size and financial capacity. You can get an overview of the available lease programs by checking out the lease company’s website or by checking out lease broker sites.
Always read the fine print
Read the fine print. No matter how long or how many pages the contract is, make sure that you will not miss a single detail in your equipment lease agreement. Carefully study the lessor’s policy particularly with regards to fees, special situations (ex. early lease termination), and modifications to the terms you initially signed up for.