Choosing an equipment lease company may not be so easy when you are confronted with a lot of choices. In response to the great demand for business equipment leasing, an increasing number of finance companies today are offering lease financing services to many businesses.
Would you like to apply for a business equipment lease? If yes, then it is crucial that you find the right leasing partner. In this article, let’s talk about the characteristics that you should look for from a business equipment lease provider:
Find a lessor that caters to the niche where your business belongs. Some leasing firms exclusively offer lease financing to established businesses while others do offer equipment lease programs for new and start-up businesses.
Some companies only deal with large corporations so if you own a small business, then you should make sure that your chosen lease provider is right for you. There are leasing firms that only offer industrial equipment or heavy equipment. But there are also one-stop shop companies that offer all kinds of lease financing services to all types of businesses, for all types of equipment.
Check the lessor’s credit requirement. If you have bad credit, see to it that your preferred leasing company does accept customers who are credit challenged. Some lessors are very strict when it comes to evaluating the customer’s credit standing. Your lease application can easily be rejected just because you did not check the lessor’s credit requirement. If they do accept bad credit, make sure you submit a letter of explanation and any documentation to prove your point.
Compare at least three potential leasing companies. You can search for possible leasing partners from the internet and you can also ask your business contacts for recommendations. It is very important to take the time to do further investigation and compare lease financing packages offered by different companies. Don’t forget to check the firm’s background and reputation. This way, you can be certain that you will be making a wise choice.
Do not submit multiple lease applications. You should not try your luck by submitting multiple lease applications to different companies at one time. Doing so can badly hurt your credit score since each inquiry made by a potential creditor can cause your score to drop. Having too many inquiries in your file can also send a negative impression to a potential lessor and instead of giving you an approval, a lessor may choose to decline your application.
Understand the equipment lease program. Different equipment leasing firms may offer numerous lease programs. The specific conditions and the repayment terms may vary from one lessor to another. It is essential therefore, that you understand the exact terms and conditions of a certain lessor before submitting your lease application. Thus, once approved, you can be sure that you will not be subjected to unreasonable terms, hidden fees, or unpleasant surprises during your lease term.
Choose a lease program that meets the needs of your business. As mentioned, equipment leasing companies offer different programs. Therefore, it is your duty to understand these available programs and find out which specific program is most suited for the current needs of your business.