Small Business Equipment Leasing
What kind of business are you considering opening? Or if you are already in business, do you need new or additional equipment? Both types of companies need to consider their options for equipment leasing rather than spending needed operational capital. There are so many advantages for a small business to lease equipment.
Like mobile phones and copy machines, it seems like as soon as an individual purchases one model and "new and improved" model comes out making the most recent purchase almost obsolete. This is a daily occurrence with industrial equipment, phone systems, hardware and software, and many other items and applications.
One of the prominent benefits for a small business owner to lease equipment is that the piece of machinery, software or other device will be the latest in the market. Using more modern tools can mean faster and more accurate productivity. In addition, company owners can look for leases with options to upgrade the item as soon as a newer model hits the streets.
Where do you begin?
If you find your company in need of new machinery, equipment or even software, to begin your due diligence make a list of the exact items that are necessary. Then it is time to look for an experienced equipment leasing broker. He or she will become your best friend throughout the process.
Your broker will ask many questions to become familiar with your business and where you are financially. Each provider has different sets of requirements for funding a lease. Some take into account how long you have been in business whereas others operate totally off a FICO score. Your broker will be well educated and experienced in matching you with a provider that looks at your individual strengths rather than weaknesses.
In addition, your broker will find you the best terms available. When you qualify your deal with the codicil that you want an upgrade option written into the agreement, the broker will find providers who are willing to write that in the contract.
Getting references to small business equipment financing providers
A standard approach to evaluating any business purchase decision is to check references, and this applies when choosing the right small business equipment financing company, as well. Have prospective companies give you contact information for 4 or 5 references, preferably small businesses similar to yours.
When you speak to references, ask questions such as these:
- Did the lessor treat you fairly?
- Did you get the right lease for your needs?
- Did the lessor provide help on your application and paperwork?
- Have you had any trouble making lease payments? How did the lessor react?
- Would you work with this small business equipment leasing company again?