How A Startup Business Can Obtain Financing Using Equipment Leasing

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.

Indeed, many successful businesses today have started from scratch and were able to grow their companies through the help of their equipment lease partners.  If you own a start-up business, what are the things you should know about this financing option?  Below are some facts about business equipment leasing.

Can you acquire a lease if you don’t have credit history?  The answer is yes. Of course, some leasing companies only accept established businesses but you can also find lessors who are willing to work with new and start-up businesses.  Yes, there are leasing firms that offer special lease programs – even for businesses with no credit history.

It would be extremely difficult to get approved by a bank if you do not have a solid business credit history to back you up.  On the contrary, acquiring an equipment lease is much easier and takes much less time than obtaining a bank loan.

In fact, you can establish business credit history and build credit by promptly submitting your monthly lease payments, and making sure that your payments are reported to a major business credit bureaus such as Dun & Bradstreet and Experian. After establishing your business credit, you will be in a much better position to apply for a bank loan.

A lot of leasing companies offer various lease packages.  The terms of repayment may also vary and a business can choose a program that complements its particular needs.  Flexibility is one of the many benefits of leasing equipment since business owners can choose a program that’s most favorable for them.

Therefore, before signing up for a lease, you should be well aware of the lessor’s terms and understand the demands of your own business.  And as with any kind of agreement, it’s very important to read the exact terms and conditions stipulated in the contract.

Be prepared to submit paperwork when you apply for a lease.  See to it that all the details you enter on your lease application are correct.  Providing false details to make your business look good will only get you into trouble.  Aside from your lease application, prepare to submit personal finance documents, your personal income tax returns for the past two years, a business summary and a lease proposal.

Avoid submitting lease requests to different business equipment leasing firms as each inquiry on your credit report can pull down your score.  Be sure to check the prerequisites as well as the lease program offered.  Conduct research and submit a lease application only once you have found the perfect lease partner.

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 For equipment lease application visit

Other Related Articles:
Business Financing – For Start Up Businesses
Equipment Lease Tips For Startup Businesses

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *