How would you like it if you could easily get your first equipment lease approval?
You can speed up the equipment lease approval by a matter of days by preparing a lease package that stands out. All you have to do is put all the necessary information in the hands of equipment lessors as early as possible. Supplying this kind of information as early as possible will not only lead to a fast turnaround but it will also lead to more competitive quotes. Here’s what you need to have on your checklist.
What You Need To Have On Your Equipment Lease Approval Checklist
1. Company Background
Make sure that you include at least two to three pages that give a description of your company, what services you offer, your marketing strategy, your value proposition, competition, key managers, business history etc. Consider this to be like a mini business plan. Some people prefer to also include projections and highlights of financial statements.
2. Description Of Equipment
Leasing companies would like to know more about the equipment you plan to lease. For instance, they will want to know how many equipment units you require, how much you are willing to pay, what the equipment does and what it is. They may also want you to provide information about the equipment manufacturers.
Many leasing company credit committees consider cash flow statements, balance sheets and income statements for a period of at least three years to be very useful. The best way to quantify your company’s plans is to include a summary of your business projections.
4. Management Bios
Managers responsible for key areas in your business should have their short bios included in your application. You can highlight their educational backgrounds, their experience, expertise and past positions.
5. Discuss Company Developments
Don’t forget to indicate if your company has experienced any significant developments whether they are good or bad. Positive development may include getting an award or an increase in sales. Negative developments may include bankruptcy or a sudden dip in your sales. Negative developments may raise some concerns with the leasing company but a pro-active discussion may help straighten things out with them.
Most business owners wait until the equipment leasing company asks them for more information to facilitate the approval process. A process that takes days can be hastened to take utmost 24 hours.
What If The Leasing Company Still Takes Longer To Approve Your Application?
If a company takes way too much time to approve your lease even after you have provided them with the necessary information, could mean a certain number of things:
You Have Been Scammed
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Internet scams involving leasing companies are not unheard of and they are much more common than you think. There are so many leasing companies on the internet and it’s very easy for business owners to fall prey to fake leasing companies posing as real ones.
Such companies often make false claims that they are the best and they have the lowest rates. Once you send your application, they request for a processing fee and a down payment before you even sign a formal lease contract with them. Once you send the money, you will never hear from them again.
The Company Has Inefficient Resources
This unfortunately happens to many business owners who don’t do enough research about an equipment leasing company before sending out an application. Some companies may not have sufficient resources or they have inefficient systems in place for approving leases. This could be the reason why your equipment lease approval process could be taking longer than necessary.
The equipment lease approval process takes a much shorter time than most people think. All you have to do is ensure that you provide all the necessary details that would facilitate a fast approval the moment you submit your application.
Always do a background check on potential equipment leasing companies before sending out applications. Check to ensure that they are registered with the Better Business Bureau and find out how long they have been in business. Never make any payments before you have signed a formal lease agreement. Your agreement should include all costs that you are expected to pay.
For more information on the equipment lease approval process, simply CLICK HERE.