Equipment leasing comes in many shapes and sizes. Many companies have found leasing to be the best way to finance their business, whether they are a new business or established.
All businesses require 
equipment to run properly. Some equipment loses its value quickly. By leasing this type of equipment you can return at the end of your lease term and get the latest version.
Equipment leasing is based on many factors, mainly the age of your business and your credit.
But unlike many forms of business financing. Equipment leasing is open to even HIGH-RISK business. What is a high-risk business?
- A startup business is considered high risk because there is no concrete way of knowing if this new business venture will be successful. The failure rate for start up businesses is 50% within the first 5 years and 70% within 10 years. So you can see why some lenders are hesitant to lend to start up business owners. But there are ways for a new business to get financed. Check out our start-up business equipment leasing program for some tips.
- A business owner with bad credit. Bad credit business financing isn’t rocket science. It surprises me that so many people tell me they went thru so many companies and rejections before finding us. If a deal makes sense. There is a way to get it done. In equipment leasing, there are several different ways to get a bad credit deal financed.
- You need to know who the right lending company is for the deal.
- You need to know how to “package th deal so that it doesn’t seem so “High Risk”
- You need to know which deals can move forward using the business owners credit and which ones you will need to have additional collateral or a co-signer for. For more information on our bad credit equipment leasing programs or our secured business loans, click here.
You should find an equipment leasing specialists to help you out during the lease search process because as brokers, we know our banks and funding sources. Once you explain to us what your situation is and what you are trying to accomplish, we can help you get it done!
When you talk to a leasing broker, they will want to know the following:
- What type of equipment do you want to buy
- New or Used
- If its used be ready to provide a condition report and pictures of the equipment
- Do you have credit problems? If so be prepared to submit a letter of explanation
- If you are a startup business, make sure you have AT LEAST an executive summary, if not a full business plan
- Bank statements – Most will require your most recent 3 months of statements. They want this to make sure that your business can afford your monthly payments
Many people call us and they have credit problems, but they want to have good credit rates. Be realistic when you are speaking with your leasing specialist. If you have credit problems, or a start-up business, or in a high-risk industry, expect higher rates than your good credit or established business counterparts.
Related Articles:
- Equipment Leasings – A Practical Method of Business Financing
- Equipment Leasing or Lease Finance Edge Over Acquiring of Asset
- How to Choose Your Business Equipment Lease Partner