All business owners are confronted with the challenge of financing their companies and for many of them, they are able to find practical ways to successfully fund their businesses. One way to save and stretch capital is to lease business equipment. Instead of spending a large portion of the business’s budget on purchasing equipment, leasing enables the business owner to use their available cash for other important business expenses.
What does it take to find a reliable business equipment lease provider? Read on and find out.
Not All Equipment Leasing Companies Are the Same
Not all business equipment leasing companies are the same. Some leasing companies exclusively cater to businesses that belong to specific industries. For instance, there are companies who offer leasing for specialized machines only, or for business that have been established for a certain amount of time only.On the other hand, you can also find leasing companies that act as a one-stop shop, providing lease services for all types of businesses (new, old, corp or sole proprietor) and equipment.
When it comes to approving leases, different providers also have varying standards. Some lessors are more exacting than others. Some lessors only accept customers with good to excellent credit history. Meanwhile, there are leasing companies that extend special lease programs for new business, start-up businesses; even for businesses with bad credit history and no credit history.
How much financing is provided? Again, this depends on the lease provider. Some lessors offer micro lease programs (generally any lease under $3000), while some will only work on lease deals of $50,000 and above. As the owner of the business, it is up to you to make sure that your chosen lease provider accepts businesses of the same type, scale, and credit standing as your business.
Searching for the Right Business Equipment Lease Partner
How can you determine whether you’ve made the right choice? If this would be your first time to apply for a business equipment lease, it is recommended that you seek help. You may ask for referrals from your business contacts such as your business attorney, suppliers, or bank.
Create a list of prospective leasing firms that you can consider. Then be ready to investigate further. Check out the lease programs available as well as the prerequisites that you need to prepare.
Use the internet to search for a good equipment lease partner. Visit the website of a trusted equipment leasing trade association in your State or country and find a list of recommended leasing companies in your area.
Compare at least three potential equipment leasing companies. Again, make sure that these lessors do offer services for businesses like yours. After conducting research, request for a pricing quotation so you can compare the rates and fees. Avoid submitting multiple applications to different leasing firms,each leasing company will need to pull your credit and multiple inquires will adversely effect your credit. Submit an application only after making sure that you’ve found the right lease program.