Equipment leasing is becoming the preferred type of equipment financing, accounting for about 30% of a company’s equipment acquisitions. Still, businesses face the challenge of finding a lender with lower interest rates. Apart from the low rates, companies also have to find the right lessor who will not take time to approve or fail to deliver. That means an entrepreneur needs to research if they are to find a good lessor properly.
How Leasing Companies Vary
Leasing companies differ in several ways. Some may specialize in specific equipment, some in lease types, and some in particular industries. For example, one company may focus on medical equipment while another on farming equipment. Leasing companies can also vary in resources. Large leasing companies are often owned by financial companies, banks, or large industrial institutions. Small and midsize companies are more in number, and they also have skilled professionals and enough resources. The important thing is that you work with a leasing company offering the best terms.
Where and When To Look
As soon as you determine your company needs, start your search for an equipment leasing company. Some things to consider include pricing, lease term, monthly cash outlay, and the right type of lease. You can get referrals from your accountant, friends, or other entrepreneurs in similar industries. It is good to have as many options as possible in order to find the best terms.
Assess Leasing Companies
Once you have your list, some qualities to look out for include reputation, experience and expertise, performance, and a relationship approach. Call as many companies as you can, discussing your equipment needs. One of the questions you need to ask is whether they are familiar with the equipment you want. You can also get previous customer references to get an idea of how they deal with customers.
Lease Brokers
You can choose to work with one or go directly to lessors. However, lease brokers can be resourceful if you are new to this and are having challenges with finding the right lessor. However, ensure you work with someone of integrity.
Equipment leasing is worth it as long as you work with the right leasing company. Proper research and planning are all you need. If your business needs equipment financing and is looking for funding, reach out to Spearing Capital & Consulting, Inc. We can offer you solutions, ensuring your business operations do not come to a stop.