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. If you’re going to apply for an equipment lease, what specific equipment would you need? Keep in mind that you should stick with what your company needs. Meaning the essential pieces of equipment, sometimes need and “want” are two different things. Know the difference.
2. Know your business credit standing.
If you own an established business and if you are registered with Dun & Bradstreet (D&B), request for a copy of your report so you can check your business credit standing. Take note that some business equipment leasing companies strictly require good business credit or a high Paydex score. Submitting your lease application to the wrong lessor will of course, lead to rejection.
3.Know what your personal credit rating is.
It is also wise to check your personal credit score prior to applying for a business equipment lease. Some leasing companies exclusively accept customers with good credit. Meanwhile, you can also find business equipment lease providers who accept customers with bad credit or no credit history. You need to know where you stand before choosing a lease partner.
If you can get a referral from an existing customer, you can get a feel for how the company works. Don’t forget to ask your business contacts such as your attorney, accountant, or suppliers if they can recommend a business equipment leasing company that you can consider.
5.Compare at least 3 business equipment lease providers.
Check out at least three leasing companies and find out the lease programs they offer. Do research about each company’s background and track record. Understand the company’s requirements, terms and conditions. By doing careful comparison, you can be sure that you’ll choose the right leasing partner for your own 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.