Tips for Getting a Small Business Equipment Lease

Written by Small Business Magazine on January 30, 2014. Posted in Business capital funding, Medical equipment lease, Startup business loan

How to get funding for a small business

Small start-up businesses are rarely able to purchase equipment outright, and because they don’t often have time to establish positive credit history before the need for equipment arises, business equipment loans are usually out of the question. Fortunately, they still have options. Commercial equipment financing in the form of a lease is regarded as a reasonable alternative to business equipment loans and high business equipment loan rates. We’ve compiled a few of our best tips for companies preparing to lease equipment. It’s much simpler than you may think!

  1. Know what you need. Before you ask your lender about equipment leasing, it’s important that you research your options. Figure out exactly what you require and how much it’s going to cost.
  2. Plan for promptness. You’ll need your new equipment on site before you open, and waiting around for approval on business equipment loans can slow down your opening. Fortunately, leases can often be approved quickly, resulting in prompt delivery. Still, make sure you plan ahead so that you aren’t left waiting.
  3. Ask for a little flexibility. Many leasing companies can offer some payment flexibility. Be upfront about what you can do, and ask for help making your lease work. One option might be to have lower payments at the beginning of the lease.
  4. Prepare your paperwork. All business transactions require paperwork, and though each leasing company will have its own specific needs, most will ask for a lease equipment proposal, your financial statements, an explanation of any past credit problems, and your tax returns. Have that information ready and available.
  5. Check your own credit. They’re going to do it for you, so you might as well know what they’re going to find. If you already know your credit score, you’ll be able to offer an explanation for any concerns they might have.
  6. Limit your applications. Filling out too many can backfire, especially if leasing companies can see a long list of rejections. Be forthcoming about the fact that you’re a young company without much credit history, and look for a lender that will give you a chance.

As an alternative to business equipment loans, leases can be very effective. Make sure you do your part in providing the necessary information, and you’ll be more likely to get the lease you need to succeed.

Trackback from your site.

Leave a comment

You must be logged in to post a comment.