Checklist for Choosing an Equipment Leasing Company

 

Equipment leasing has many benefits for growing companies. A good leasing arrangement may help your business generate needed equipment to raise productivity in order to generate additional profits.

Do you want to get the best possible equipment lease for your company? Do you want to avoid wasting your time, getting hit with hidden fees and botched performance with the leasing company? Make sure you follow this checklist:

o Start your pursuit for any leasing company early in the lease planning process – it takes time.

o Set priorities for the type of lease transaction you are searching for. Consider criteria such as lease rate, monthly payment amount, impact of lease on financial statements, flexibility of lease terms, amount of lease, capability to receive the equipment which you will want.

o Try to find no less than 3 to 4 leasing companies to buy your lease transaction.

o Look for apartment leasing company that pinpoint the type of transaction you would like. Some leasing companies are experts in some kinds of equipment, on certain size leasing transactions, on certain size customers or on certain industries.

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o Start your pursuit to get a leasing company with individuals you realize. Consult your attorney, your accountant, your banker or colleagues with your industry that have leased equipment.

o Call your industry trade association or perhaps 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 guage their: experience and expertise; reputation; and ability to perform. Get several customer and vendor references per leasing company. If you possibly could, get yourself a Dunn & Bradstreet report per leasing company. Look for lawsuits, judgments against them, severe payment delinquencies and/or poor financial performance – these indicators can indicate a leasing company that may not deliver!

o Investigate lease bidders online. Check Google.com to see whether prospective leasing companies show up in any newsworthy articles or even in any group discussion/message boards. Look for unresolved problems, fraud, financial problems, awards, as well as success stories.

o Ensure prospective bidders belong to a number of the key trade associations for equipment leasing. While membership does not guarantee integrity or expertise, most of the associations set standards of conduct for their members and possess some sort of policing.

o Avoid high-pressure lease sellers. If the leasing company representative says something that creates a significant misrepresentation, walk away.

o And ultimately, avoid giving lease deposits and/or advance rental payments to lease brokers. Brokers don’t give you the financing directly and, in possession of your money, represent any credit risk.

Selecting the best leasing company can save you considerable time and funds. You will receive quicker lease turn-around, better pricing and terms, and prevent major blunders. Be a fan of leasing companies with higher reputations, long track records as well as service standards. And also by every means, utilize this checklist.