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.
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.
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