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.
How does equipment leasing work and why is it becoming so popular? Well you the business owner finds and equipment vendor who is selling the type of equipment your business needs. Once you negotiate the sale price you contact an equipment leasing company , fill out their application and after your approval the leasing company will contact your vendor to start making arrangements to pay them directly for the equipment you want. Many business owners like that by working with a leasing company they can work with many different vendors for example, buy their office furniture with one vendor and their office technical equipment with another vendor, but it can be done on one lease.
A typical equipment lease will run for 12 months up to 5+ years. These terms are negotiable. Rate and terms are tied to the business and owners credit, how old the business is (2 years and older are considered more stable) and the businesses over all financial health. There are many different types of equipment leasing programs available. The majority of the programs are created for established business with good credit (business and personal). But there are programs available for people who are just starting their businesses or people with PAST credit problems. If you or your business are experiencing credit problems at the time of the application, you will definitely need to find a strong co-signer or consider doing an equipment saleleaseback
Equipment leasing is basically appropriate for any kind of business. Big or small. New or old. Good credit or bad credit. Leasing not only helps you get the equipment your business needs quickly and relatively easily, but it will help your business build its own credit file by reporting to D&B.
Does your business need new equipment? Have you been having trouble getting approved by your local bank! Contact one of our leasing brokers now! 1-888-308-7160 or click here to apply now for an equipment lease online.