Equipment leasing has several benefits for growing companies. A favorable leasing arrangement will help your business bring in needed equipment to improve productivity or to generate additional profits.
Do you need to receive the best possible equipment lease-ups for your company? Would you like to save your time and energy, getting hit with hidden fees and botched performance with the leasing company? Make sure you follow this checklist:
o Start your search to get a leasing company at the beginning of the lease planning process – it takes time.
o Set priorities to the sort of lease transaction you are searching for. Consider criteria such as lease rate, monthly payment amount, impact of lease on fiscal reports, flexibility of lease terms, amount of lease, ability to get the equipment that you need.
o Search for at least three to four leasing companies to invest in your lease transaction.
o Seek out leasing businesses that pinpoint the kind of transaction you are searching for. Some leasing companies focus on some kinds of equipment, on certain size leasing transactions, on certain size customers or on certain industries.
o Start your research for a leasing company with folks you already know. Consult your attorney, your accountant, your banker or colleagues with your industry that have leased equipment.
o Call your industry trade association or the major equipment leasing associations for recommendations. Four leading equipment leasing trade associations’ websites are: elaonline.com; eael.org; uael.org; and naelb.org.
o Get enough specifics of prospective leasing companies to evaluate their: expertise and experience; reputation; and skill to do. Get several customer and vendor references for each leasing company. If you’re able to, get a Dunn & Bradstreet report for each and every leasing company. Try to find lawsuits, judgments against them, severe payment delinquencies and/or poor financial performance – any of these indicators can indicate a leasing company that could not deliver!
o Investigate lease bidders online. Check Google.com to find out whether prospective leasing companies can be found in any newsworthy articles or in any group discussion/message boards. Try to find unresolved problems, fraud, financial problems, awards, and or successes.
o Make certain prospective bidders fit in with a number of the main trade associations for equipment leasing. While membership does not guarantee integrity or expertise, the majority of the associations set standards of conduct for members and possess some kind of policing.
o Avoid high-pressure lease sellers. If a leasing company representative says anything that creates a significant misrepresentation, walk away.
o And finally, avoid giving lease deposits and/or advance rental payments to lease brokers. Brokers do not provide you with the financing directly and, owning your money, represent a potential credit risk.
Choosing the right leasing company could help you save considerable time and your money. You will get quicker lease turn-around, better pricing and terms, and prevent major blunders. Be a fan of leasing companies with good reputations, long track records and service standards. Through every means, use this checklist.