How to Choose Your Business Equipment Lease Partner
Now that you have decided to acquire equipment lease financing, are you ready to look for your business equipment lease partner?
What are the factors that should influence your decision? Below are some suggestions:
Reliable Service.
This is a crucial aspect when conducting your search. You need to find an equipment lease partner who will be willing to assist you not just in the processing of your lease application, but throughout your lease term.
Choose a company who provide you the help you need, not with the equipment you need, but also with the installation and maintenance services. Ask other established businesses in your industry and learn what they have to say about a particular lease provider. Based upon their experience, which leasing company would they recommend to other business owners?
Smooth Lease Processing.
An equipment lease company that has been providing great service for a long time will surely handle lease application processes without delays. Does the lease company offer to help you out with the preparations of your paperwork? Do they explain to you the different options you have when choosing the right lease package?
Flexible terms.
Since every business has its own unique needs and situation, you need to find an equipment leasing company that offers flexible terms, especially with regards to repayment. Do you find a repayment plan that is best suited to your company’s financial capability? Will you have the option to return or purchase the equipment at the end of your lease term?
Reasonable Provisions.
Aside from the rates and fees, pay attention to the lease company’s provisions on special circumstances. For instance, what will happen in case you decide to back out of the lease before the end of your contract? What will happen if your business does not go well as expected? What happens if you want to replace your leased equipment with the newest model in the market?
Field of specialization.
You should know that not all leasing companies cater to all kinds of businesses. There are equipment lease providers that specialize in specific industry. In addition, some companies offer leasing for larger corporations only while others may accept or focus on small businesses.
It is recommended that you look for an equipment lease company that serves your exact type of business. This way, you can ensure your chance of approval, minimize the possibility of rejection, and acquire a lease package that truly complements your business’s demands.
Background and reputation.
Do your own investigation. Conduct actual interviews with other business owners, business organizations or business attorneys to get a better view about a particular lessor. You can also check out small business forums or community groups online to gather information.
Consider a lease broker.
Hiring a lease broker may be helpful especially for more difficult transactions such as if you have a bad credit history. Nevertheless, business owners are warned against working with lease brokers who may not be experienced or may not truly understand the ins and outs of the lease process. Before hiring a broker, be sure to check his/her credentials and training. Choose a broker that is registered with the NAELB (National Association of Equipment Leasing Brokers (or other major equipment leasing associations).