If you are a start-up business in need of an equipment lease, there are steps that you can do to ensure the approval of your application. Take a look at this guide to equipment leasing to learn how to get a lease for you if you have just started your own small business.:
Know the lessor’s qualifications. Don’t waste your time evaluating lessors that are not interested in your type of business. Keep in mind that not all leasing companies provide services for new and start-up businesses (any business less than two years old) . If you submit your lease application to the wrong company, you might get instantly rejected. The good news is that you can find leasing companies that cater to new and start-up businesses. These are the leasing companies that you want to consider in your search.
Prepare the necessary paperwork. Get to know the documentations that you need to prepare when applying for a lease. The specific requirements may differ from one lessor to another. However, for new and start-up businesses, one basic prerequisite is the executive summary. An executive summary is basically a one or 2 page summary of your business. business plan. See to it that you can submit an impressive and concise plan of your business.
Check credit requirements. Some equipment leasing companies grant approval only to businesses with good credit history. Since you are new business with no credit history, you must seek out lessors who are willing to provide service to businesses like you. If you have bad credit, you must make sure that a potential leasing company offers assistance to businesses that are credit challenged. Be prepared to enclose a written explanation along with your lease application regarding the circumstances that lead to your bad credit.
Don’t try your luck. Do not submit equipment lease applications to different leasing providers just to see which company will give the quickest approval. Such a strategy could be damaging your credit rating and may send out a negative impression to a potential lessor. Even worse, if one leasing company rejects your application, it will not only lower your credit score, other lessors may also doubt your credibility.
- Why Get a Small Business Equipment Lease
- Equipment Lease Tips for Startup Businesses
- How to Save on your Next Equipment Lease
About the author:
Lai Castillo is an equipment leasing broker that specializes in getting start up equipment leasing and providing articles in finding solutions for Leasefunders.com. For equipment lease application visit leasefunders.com.