Equipment Leasing Tips for Business Owners
Many companies rely on large and expensive equipment in order to operate efficiently. When considering financing options, equipment leasing can be a popular and effective strategy. Whether you’re just getting started with your first machinery purchases, or saving up for a large expansion of your business, use these helpful tips to get the most out of your leases.
A popular reason to choose leasing is the wide availability. Although more established businesses tend to receive better financing terms, even a first-time business owner can receive competitive leasing options. This allows you to get started immediately with the equipment you need, without draining all your working capital.
Be sure to always purchase from a licensed and reputable dealer, preferably directly from the manufacturer. This will ensure that you get the latest equipment and that there aren’t any hidden fees, damages or other considerations.
Before you receive your equipment, you’ll need to undergo a credit check. There are many financial aspects that a dealer may require before signing your equipment lease. If you have a business credit score, a good score can dramatically improve your chances of receiving a favorable lease. Otherwise, financial statements, personal credit scores and personal finances are all used to determine your eligibility and the interest rates. If equipment leasing quotes seem too high for your business to handle, consider improving your credit score and acquiring more business working capital before reapplying.
Carefully review all the terms and conditions before signing a lease agreement. Remember that these agreements are flexible and often include different terms for different companies. If you need a longer term, lower monthly payments or seasonal payment adjustments, don’t be afraid to discuss these with your dealer.
Some leases allow you to purchase the equipment after the end of the lease, while others allow you to upgrade and resign the lease with the newest model of the same type. The best type of lease will depend on the equipment. Will you keep this exact piece of equipment for years with little additional costs, or does your equipment quickly lose value and become obsolete in a few years? Sign a lease that is designed for this particular piece of equipment and all the peculiarities of your particular industry.
From printers to industrial machinery, equipment leasing can help you obtain all the machines you need to operate an efficient business. Use these tips to sign the best lease for your business, and leverage your finances with a competitive, low-interest lease.