If my credit is down low, are there bad credit leasing companies for me to hire?
One of the downsides in life is that we all make mistakes and, while they are useful in the sense that we learn from them, oftentimes the consequences will linger. This is shown very vividly in the financial world; it’s so easy to slip and lose your high credit, marking you as more of risk in cases like loans and such.
Handling these issues is oftentimes very troublesome, especially if you’re trying to starting a business; you’ll most likely require at least one loan or form of a loan. Many business owners try to get a loan to purchase all of the necessities for their company, only to hit a roadblock in the form of a credit check.
This is extremely disappointing especially for business owners who made one small credit related mistake and are trying to get themselves back on track, but there are solutions that are much better. Many business owners don’t realize that instead of buying their equipment, they could simply lease it and save money.
Plus, bad credit leasing companies only do soft credit checks, which do not affect your credit score, and they’re guaranteed to cut you slack if your credit is low.
How does Leasing Work?
Leasing involves a contract that puts good, furbished equipment in your hands in exchange for a flat, monthly rate. The contract part means that you pay that monthly rate and are loaned the equipment for a pre-determined period of time.
Leasing has advantages in the sense that you don’t have to pay for the equipment all up front, which is great if you’re starting up a business. With a lower starting pay, you can focus your finances more on the many other parts of your business, like your location, your employees, fees, utilities, and more.
Leasing also offers the benefit of tax deductibles, so every year, you get more money put in your pocket from your tax returns. Leasing obviously applies to certain kinds of equipment; if it’s something smaller or more inexpensive, paying up front is probably the better choice.
However, if you need something that’s normally more expensive and you want the best version of that equipment, a lease can put that equipment in your hands for a few years. In addition, leasing offers you upgrades in your equipment so you don’t fall behind the technological curve.
At the end of your lease, you get the options of either returning the equipment, buying the equipment for a bargained cost, or continuing your lease and gaining an upgrade on your hardware.
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What are the Pros and Cons of Buying Hardware?
Buying equipment is good and bad for a few reasons, but if you’re trying to buy equipment with bad credit, you’re obviously trying to avoid a loan. Any loan involves a hard credit check, which means that not only do they find out your credit is bad, negatively impacting your loan if it even happens, but it also lowers your credit score even more.
Buying equipment gives you two advantages: one, you get to claim it as a business asset, meaning you get more money towards paying for the equipment itself (normally a small amount, but every bit helps). The second is simple: you get to own the equipment; you don’t owe it to anyone else, it’s yours to take care of and deal with and make money off of.
As great as it is to be able to own equipment, it can also be detrimental. For instance, if you own a piece of hardware that doesn’t last long or becomes outdated often, then you essentially spent a lot of money for nothing.
In addition, most equipment that falls in categories of not becoming outdated over time (like ovens, gym equipment, trucks, etc.) are normally so pricey and needed in bulk that you’d need a loan to even get them, bringing you right back where you started.
How can Bad Credit Leasing Companies Help my Company?
No business owner who works hard to better themselves and their business deserves to go through the struggles of starting a business without some help, and those who have a bad credit score get stuck doing exactly that.
Many people have made financial mistakes in their past and have learned from them, only to be marked in the form of a blemish on their credit score. Many business owners get frustrated trying to find an effective alternative to handling this dilemma and normally have to either set an extremely low budget or just give up.
Luckily for them, there is an alternative in the form of bad credit leasing companies, who will offer them good loans on their equipment at decent rates.
With leasing, you can get a soft credit check that doesn’t impact your score, a good lease rate and lease, and get all the equipment you need. To learn more about bad credit leasing companies, click here.