Leasing business equipment is a great alternative to purchasing because it comes with many advantages but you have to be able to work with the best equipment leasing company.
In today’s economy, it can be very overwhelming trying to come up with money to cover up start up costs. Depending on the type of business equipment you need, acquiring it can be very costly. Thankfully, through leasing, you can acquire equipment with 100% financing, it doesn’t matter what kind of equipment you need. It can range from computers, X-ray machines, restaurant equipment, heavy equipment, etc. The secret to leasing successfully is to find out how you can work with the best equipment leasing company.
How To work With The Best Equipment Leasing Company
In order for you to work with the best equipment leasing company, you have to find the best one first. The best leasing companies differentiate themselves by area of specialization. For instance, some equipment leasing companies prefer to lease only medical equipment or heavy equipment or office equipment while others prefer to lease trucks. It is advisable to lease with companies that specialize in leasing equipment within your industry.
Other equipment leasing companies differentiate themselves by the customer market they serve. For instance, there are those that specialize in small ticket leasing while others specialize in large ticket leasing.
The best equipment leasing company will also approve your lease in a timely manner. While quick turn around on approval is key, you should ensure that you understand the approval process. Approval for most businesses depends on the size of the transaction and if they can prove they are capable of paying back the lease. Usually a good credit score is proof enough that you can pay back the lease and in timely installments.
Some equipment leasing companies will try to lure you into a lease agreement by offering you low rates. Some even go to the extent of installing faulty lease calculators on their websites. These calculators generate faulty numbers, which do not represent the actual lease payments that you are supposed to make. This can be very frustrating to business owners once they realize that the calculators do not factor in things like interim rent, extension fees, fair market value, etc.
Low rates also do not give a true picture of how much the lease would cost. The best equipment leasing company will ensure that you understand the true cost of financing. However, you should talk to a financial advisor so that they can advise you which leasing solution is suitable for your business.
A good leasing company should be able to cater for your company’s specific financial situation. For instance, if your business is a seasonal one, then they should be willing to give you a more flexible lease payment plan. The best equipment leasing company will offer a customized program for your specific needs.
The type of support provided by the leasing company is also very important. The company should have resources and support available 24/7. Are there any specific contacts that you can use to contact them such as instant online chat, email, fax, phone etc? Does the company have a website and do they offer an FAQ section, videos, articles and a blog that talks about leasing?
Avoid These Mistakes
1. Sending Out Several Applications
Many business owners, especially those that have a damaged credit score, tend to send out applications to different equipment leasing companies hoping that one of them will approve their application. This is a bad idea because it will hurt your credit scores. You should instead look for a leasing company that has programs that specifically cater to companies with low credit scores.
2. Making A Hasty Decision
Looking for a leasing company is not easy and you might feel the need to find one soon, which often leads to making hasty decisions. You should compare at least three equipment leasing companies before you settle on one.
Final Note
Qualifying for a lease is not as easy as many business owners would like to believe. With a tightened credit market, many equipment leasing companies have tightened their credit standards and rely on credit scores as part of their lease approval process.
For more information on how to work with the best equipment leasing company, simply CLICK HERE.