US Business Funding: From computers and heavy machinery to complete offices, it is possible to lease almost anything for your business. Equipment leasing can provide a lifeline for cash-strapped businesses in need of the tools of the trade. Equipment leasing is basically a loan in which the lender buys and owns equipment and then "rents" it to a business at a flat monthly rate for a specified number of months. At the end of the lease, the business may purchase the equipment for its fair market value, continue leasing, lease new equipment or return it.
How to Lease Equipment?
Leasing equipment is somewhat similar to leasing a vehicle in the sense that you are basically "renting" the equipment. In common, you will pay a flat monthly fee to an equipment leasing company to use the equipment for an extended period of time. However, the control remains under the equipment leasing company's name. In many cases, a purchase option exists at the termination of the lease so that you can acquire ownership of the equipment.
Before choosing an equipment leasing company, it is essential that you recognize what type of equipment you want to lease as well as the make and model. It is also supportive if you come prepared with a quotation from the equipment vendor because equipment leasing companies will regularly ask for this when submitting an agreement. As well, be able to explain why you require the equipment and what you plan to apply it to. This information will help the equipment leasing company decide if you succeed for financing.
Every leasing company will need an application to discover more information about your business practices and credit history of the sponsors. Every company is different so be confident to do considerable research to choose the best one to hold for your business. In most cases, you will need to offer the names of all the owners/ sponsors, their social security numbers, company history, a central tax ID, and fundamental contact information. Once you have gathered all of this information you will be set to apply.
After performing all of your investigation and putting together necessary information, you will be ready to apply for leasing and funding. Some companies have an online application and others need you to fax or email it in. The application procedure is usually appealing, quick and some companies will react to you the very same day you apply. Be confident to include your SSN in your application so the equipment leasing company is capable to drag your credit file; if you reject to do so your application cannot be processed. Additionally, large ticket items will possibly require more time to process, so wait when waiting to hear back about the lease.
If you are accepted for financing, you will require to choose a term for leasing. In general, leasing terms fall between two and four years. There are positively other options available, although two to four year terms are generally the easiest to obtain. Different types of equipment will need different lease arrangements, so prepare to be flexible when working with your leasing company. The longer the term, the lesser the payment. Be sure to choose a term that works in line with your company's cash flow so you don't have to assign all of your possessions in one place.
The final step is to sign your lease agreement and begin the lease. After implementing all of the preceding steps, carefully evaluate each lease paper and sign the lease. If you have any questions or apprehension about anything pertaining to your lease or equipment, do not falter to call your equipment leasing expert.