Identifying a Good Equipment Lease Business Partner
Each year, many businesses are confronted with the challenge of finding financing to purchase equipment. While applying for a bank loan is an option, entrepreneurs often find that getting approved can be very difficult especially for start-up businesses. The good news is that there are leasing companies that offer equipment lease financing to help both big and small businesses face up to the challenge.
How can you choose the right leasing company? Considering the pointers discussed in this article can help you identify a reliable business equipment lease partner.
Not All Equipment Leasing Companies Are the Same
First of all, it’s important to understand that not all business leasing companies offer the same types of services. Some leasing companies cater exclusively to certain businesses or industries, some provide specialized equipment or machines, some only provide vehicle leasing, and there are one-stop shop lease companies that offer services for all kinds of businesses.
Lease companies also have varying standards when it comes to accepting clients. You can find leasing firms that strictly require good credit history while other lessors may offer special lease programs for new companies with no credit history and for businesses with bad credit.
The amount of financing offered also varies from one business equipment lease provider to the next. Some lessors may offer smaller financing (under $100,000) and there are lease companies that extend higher lease financing ($100,000 and above).
Before submitting your lease application, it is very important to make sure that your chosen leasing company does provide service to the same type and scale of business that you run and flexible lease programs that will work well with the demands of your business.
Searching for the Right Business Equipment Lease Partner
To find a lease company that matches your own business, look for possible referrals from your personal contacts such as your business attorney, suppliers, banks and friends in the industry. From this list of prospective lease companies, do your own research and check out the specific lease programs offered and the prerequisites of application.
You can also use the internet to widen out your research by visiting websites of major equipment leasing trade associations in your State or country and request for a list of potential lease companies that cater to your type of business.
The next step is to evaluate your top three prospective leasing companies. When comparing lessors, consider the company’s background and reputation, the specific services offered, the ability to deliver, customer relationships and the criteria for approving lease application.
After gathering all the information you need, you can request for pricing quotation from 2 to 3 lease firms. Avoid submitting multiple lease applications to more than three providers as too many queries can send out a negative impression to a lessor who is reviewing your application.