Identifying A Good Equipment Lease Business Partner
Time and again, many business owners bravely face the challenge of financing the business, particularly with regards to purchasing equipment. Although banks offer business loans that can be used for financing equipment, getting approved is generally not that easy, especially if you have just started the business. It is a relief to know that that there are leasing companies that offer equipment lease financing, a wonderful option for big and small businesses in the industry. In this article, let us discuss pointers on how you can find a reliable business equipment lease company.
Not All Equipment Leasing Companies Are the Same
Different leasing companies offer different types of lease services. Some lessors exclusively provide service to certain types of industries. There are lease companies that offer leasing for specialized machines only while there are lease companies that act as a one-stop shop for businesses that need any kind of lease.
Lessors also have different standards in approving leases. Some leasing firms actually have more rigid standards than others, primarily when evaluating the clients credit history. Then there are other lessors that offer special lease programs for new and start-up businesses. Thus, even without business credit, it still possible to get a lease.
The amount of lease financing offered varies from one lessor to another. Some leasing companies may provide a low lease (under $100,000) and some may provide a higher amount of lease financing ($100,000 and above).
A business owner must make sure that your chosen leasing company does provide service to the same type and scale of business that you manage prior to submitting application. It is important to look for a business equipment lease provider that offers flexible programs.
Searching for the Right Business Equipment Lease Partner
One way to find the right business equipment lease partner is to ask for help. Request for referrals from your personal contacts such as your business attorney, suppliers, banks and friends in the industry. Gather a list of potential leasing firms and be prepared to investigate what each firm has to offer. Make sure that you understand the specific lease programs offered as well as the list of requirements that you need to prepare.
The internet is also a great tool in finding an equipment lease provider. Check out websites of major equipment leasing trade associations in your State or country and find a list of recommended lessors that provide service to businesses in the same industry and scale as yours.
Choose your top three potential leasing companies and be prepared to do further evaluation. Dont forget to check the leasing companys background and reputation, the specific services it offers, the companys ability to deliver, its relationship with customers and the prerequisites in applying for a lease.
Once you have collected all the information you need, ask for pricing quotation from 2 to 3 lease firms. Do not submit multiple lease applications to more than three leasing companies as too many queries can send out a negative impression to a potential lessor.