Equipment leasing has several benefits for growing companies. A positive leasing arrangement may help your organization generate needed equipment to improve productivity in order to generate additional profits.
Do you need to get the best possible equipment lease to your company? Would you like to save your time and efforts, getting hit with hidden fees and botched performance from the leasing company? Be sure to follow this checklist:
o Start your search for any leasing company early in the lease planning process – it will require time.
o Set priorities for your kind of lease transaction you are seeking. Consider criteria like lease rate, payment amount, impact of lease on financial statements, flexibility of lease terms, volume of lease, ability to have the equipment which you will want.
o Try to find no less than 3 or 4 leasing companies to invest in your lease transaction.
o Search for leasing firms that concentrate on the sort of transaction you would like. Some leasing companies specialize in some kinds of equipment, on certain size leasing transactions, on certain size customers or on certain industries.
o Start your quest to get a leasing company with people you realize. Talk with your attorney, an accountant, your banker or colleagues in your industry who’ve leased equipment.
o Call your industry trade association or major equipment apartment leasing help associations for recommendations. Four leading equipment leasing trade associations’ websites are: elaonline.com; eael.org; uael.org; and naelb.org.
o Get enough information regarding prospective leasing companies to judge their: expertise and experience; reputation; and skill to do. Get several customer and vendor references for each and every leasing company. When you can, have a Dunn & Bradstreet report for every leasing company. Look for lawsuits, judgments against them, severe payment delinquencies and/or poor financial performance – some of these indicators can indicate a leasing company that could not deliver!
o Investigate lease bidders online. Check Google.com to view whether prospective leasing companies show up in any newsworthy articles or in any group discussion/message boards. Look for unresolved problems, fraud, financial problems, awards, as well as testimonials.
o Make sure prospective bidders fit in with one or more of the key trade associations for equipment leasing. While membership does not guarantee integrity or expertise, almost all of the associations set standards of conduct for their members and possess some form of policing.
o Avoid high-pressure lease sellers. If your leasing company representative says any situation that produces a significant misrepresentation, disappear.
o Not only that, avoid giving lease deposits and/or advance rental payments to lease brokers. Brokers tend not to provide you with the financing directly and, owning your cash, represent a prospective credit risk.
Selecting the most appropriate leasing company will save you time and effort and your money. You will get quicker lease turn-around, better pricing and terms, and get away from major blunders. Be keen on leasing companies with good reputations, long records as well as service standards. By all means, utilize this checklist.