The equipment lease application process does not take up a lot of time. However the preparations before you fill in your application form need to be intensive and thorough so that you save plenty of time and any possible delays and hold ups when it comes to the application process.
A vast majority of the people who lease equipment are entrepreneurs and people in business. This is probably the reason why one of the most common questions asked has to do with the time it takes to apply for a lease. These kinds of people tend to be pressed for time and having to find huge chunks of time to focus on a lease application when they have so much to do is not easy.
However the good news here is that the equipment lease application process takes only a few minutes at most to fill out the application form for most leasing companies. What may take considerably more time is the preparation before application. This is why it is prudent that you have a good understanding of the whole process right up to the application and approval stages.
What Equipment Exactly?
Before you even decide which leasing company you want to go with you will need to have zeroed in on the particular equipment or machine that you are interested in. What is the make and what is the specific model of the equipment? You will also need to have a written quote from the equipment vendor because leasing companies frequently ask for this information and if you do not have it, it will delay the equipment lease application process.
Why you require the equipment and what precisely you plan to use it for? These are key questions that you will be asked and will end up being some of the determining factors as to whether or not you qualify for financing.
What Leasing Equipment Company Application?
It is important to start off by researching equipment leasing companies before you even think of applying. This will save you considerable time with the application process including avoiding being turned down and also the need to apply to dozens of companies before you find the right match. Every company is different and many specialize in certain industries or specific kinds of machinery and equipment. You will need to find the right one that is best suited to your business.
Do You Have Your Documents?
Before you apply you will have to gather all your details and documents for the application process. The full names of all the owners and guarantors of your enterprise will be required. This includes their social security numbers and federal tax ID. Company history and your full contact information will also be required. Armed with all this information you will finally be ready to apply.
The Equipment Lease Application Process
It is possible to apply online with some equipment leasing companies. Others will want you to email or fax it in. The actual application and approval process is fairly quick. In fact in some instances you will receive a response on the same day. When applying online do not forget to include your SSN because your application cannot be processed without it.
Do take note of the fact that high cost equipment and larger ticket items will often take a little longer to process and so you will need to be patient.
Once your financing has been approved the next step will be for you to select what term you want to go with for the lease. The most common are between two and four years. These are also the easiest to get approval for. The longer the term of the lease the smaller your monthly payment will be. However you will end up paying more for a longer term. This is a critical decision to make because you do not want to run into cash flow problems later by making your monthly payments too high.
The end-of-term options are also something to take careful note of and to negotiate if they are not in tandem with your requirements. There are 3 common options here. Namely fair market value (FMV), 10 per cent purchase and $1 buyout. With FMV you can purchase the equipment you have been leasing at the end of the contract at a fair market price. 10 per cent purchase as the name suggests means that you will be able to purchase the equipment at 10 percent of the purchase price. The $1 buyout is usually the most favorable for most where you can purchase the equipment at the end of the lease for $1.
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