Leasing orthopedic is a great option for many businesses, as the cost of new equipment is extremely high. But, individuals with bad credit might have issues with when trying to lease orthopedic equipment, there are a few ways to get around those issues.
Because starting up your new orthopedic practice is a time consuming task, and can be extremely expensive, you have to know certain ways to get around the high upfront expenses. Once such option to reduce the costs of starting up is to lease equipment. Leasing equipment is a great way to pay it off on a monthly basis, which limits the amount you will have to put down up front.
But, individuals with poor credit scores and rating might have difficulties getting a company to lease orthopedic equipment to them. But, there are a few ways to get around a low credit score when leasing the equipment for your business.
Find A Cosigner When You Lease Orthopedic Equipment
A cosigner could be a friend, relative, or business partner you know, who has a high enough credit rating to be approved for the lease term. When you choose a cosigner, the individual should have excellent credit, because the lessor might have reservations in knowing you have a bad credit rating, and you are going to be using that equipment.
References Might Help –
If you have leased equipment in the past, or have done business with other companies in the past, positive references might reflect positively on you. Showing you have made timely payments in the past, never defaulted on a lease (or loan), and that you have a steady repayment history with other lessors, will show the lessor you are applying with, that you fully intend to make payments on the equipment.
With this scenario, it is likely that you will have to show the lessor you intend to take care of the equipment, and use it in the intended manner. Because of your poor credit, they might have reservations about doing business with you, and because of this, you will have to work harder to get certain lessors to trust you.
Large Down Payment –
Show the lessor you intend to pay the equipment, for the duration of time you plan on holding it. Put down a down payment of 10% or higher, as a good faith measure that you are not going to default on the leased equipment, and to show you intend to making all payments on the equipment as they are due. The more you can put down, the better. It not only shows you are serious about the lease terms, but also that you are a good faith lessee, and plan on making all payments on the equipment as they are due.
Collateral Might Be An Option
Like a secured loan, when you are applying to lease orthopedic equipment for your practice, offering some form of collateral towards the down payment, is also one way lessors might be willing to work with you. If you own something of value to your practice, or if there is something of value you are wiling to put down towards the lease, many lessors will work with this secured lease. It is a showing that you intend to pay on the lease, and that if you are not able to make the payments, or default on the lease term, the lessor is not going to lose out all the money they have put forth by extending a lease agreement to you.
Even if you are a good faith borrower, and have never had issues making payments on credit or loans in the past, the simple fact that you do have bad credit, is a red flag for many lessors. For this reason, you are going to have to find ways to get around the limitations in front of you as a bad credit borrower.
If you need the equipment for your orthopedic practice, and leasing is the only option, there will be some limits placed on you by the leasing companies. These are a few options you have, which can help you receive an approval on the lease term, even though you are a risky lessee, because of the lower than average credit rating you hold as a borrower.
Get an Instant Quote on Your Equipment Lease, Free
For more information on how to lease orthopedic equipment, simply CLICK HERE.