Leasing office equipment is a great alternative to purchasing because it offers many advantages, such as no down payment, no collateral and possible tax deductions.
An equipment lease is basically a rental agreement where a leasing company (the lessor) maintains ownership of the equipment and the business (the lessee) uses it in its business operation.
Did you know just about any type of equipment can be leased with 100% financing?
Whether you need office work stations, computers, hardware, printers, IT equipment, or copiers, leasing office equipment is as easy as filling out an application.
When it comes to choosing an equipment leasing company that’s best for you, depends on several factors including, company size, location, and what type of equipment you need.
Here is a list of questions to ask a potential leasing company.
What type of products can I lease?
The greater the selections of products that a leasing company allows the more choices you have for your company. It is also more beneficial to you when a leasing company specializes in a piece of equipment that you are looking to lease. Their expertise can help you select the best product based on use and potential upgrades. In addition, repairs and upgrades will be much easier for you to handle.
What kind of leasing programs or payment options are available?
When it comes to financing you should look for a leasing company that can cater to your company’s specific financial situation. For example, if you run a seasonal business then you may need a more flexible lease payment plan. Consider choosing a leasing company that offers customized programs to fit your needs.
*Tip - Estimate your monthly payment by using a business lease calculator.
What kind of support does your leasing company provide?
This is an extremely important topic and you want to work with a company that has support and resources readily available. Check to see what options they give for you to contact the company such as phone, fax, email, instant online chat, etc. What type of resources do they make available for you online? If the company web site offers articles, videos, FAQ section, and a blog about leasing consider it a major plus.
You should plan to compare at least three potential leasing companies and ask other business contacts who they recommend. Do your due diligence and ask the right questions so you can rest assure that you will be making the right choice.
Do not make the mistake of submitting multiple lease applications because you will hurt your credit scores from all the excessive inquiries.
On a final note, qualifying for an equipment lease is not as easy as it once was. With a tightened credit market, underwriters have tightened up their credit standards and rely more upon credit scores as part of the underwriting process. While the equipment itself serves as collateral, the credit standing of the business owner is simply part of the approval process.
If you have credit scores in the mid 600s then you should be fine but if you have low scores then repair your credit as soon as possible.
Leasing has become a popular option for businesses in today’s economy. In fact, according to the Equipment Leasing Association, eight out of ten businesses in the United States decide to lease some of their business equipment.
What has been your experience with leasing business equipment?
What kind of leasing programs or payment options are available?
When it comes to financing you should look for a leasing company that can cater to your company’s specific financial situation. For example, if you run a seasonal business then you may need a more flexible lease payment plan. Consider choosing a leasing company that offers customized programs to fit your needs.
*Tip - Estimate your monthly payment by using a business lease calculator.
What kind of support does your leasing company provide?
This is an extremely important topic and you want to work with a company that has support and resources readily available. Check to see what options they give for you to contact the company such as phone, fax, email, instant online chat, etc. What type of resources do they make available for you online? If the company web site offers articles, videos, FAQ section, and a blog about leasing consider it a major plus.
You should plan to compare at least three potential leasing companies and ask other business contacts who they recommend. Do your due diligence and ask the right questions so you can rest assure that you will be making the right choice.
Do not make the mistake of submitting multiple lease applications because you will hurt your credit scores from all the excessive inquiries.
On a final note, qualifying for an equipment lease is not as easy as it once was. With a tightened credit market, underwriters have tightened up their credit standards and rely more upon credit scores as part of the underwriting process. While the equipment itself serves as collateral, the credit standing of the business owner is simply part of the approval process.
If you have credit scores in the mid 600s then you should be fine but if you have low scores then repair your credit as soon as possible.
Leasing has become a popular option for businesses in today’s economy. In fact, according to the Equipment Leasing Association, eight out of ten businesses in the United States decide to lease some of their business equipment.
What has been your experience with leasing business equipment?
By: Marco Carbajo
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