Each year, thousands of companies face the challenge of finding attractive financing to acquire business equipment. Many of these companies approach the lease sourcing process seeking the lowest rate. While securing a low rate is a worthwhile goal in choosing a lease arrangement, it alone is not a reliable standard for obtaining the best lease transaction or lease experience.
Choosing the right lessor will help you avoid hidden fees, substandard lease terms, slow approval, and even the lessor's inability to fund your deal at the eleventh hour.
Following these 10 simple rules will help you avoid pitfalls and create a long-term financial relationship with a lessor that will work for and grow along with you.
1.Find a leasing company that specializes in financing the type of equipment you want to finance.
2.Look for a company that has highly skilled professionals, seasoned in your type of business, that have sufficient resources and the flexibility to meet your specific needs.
3.Only deal with lessors that have high integrity, have an extremely good understanding of leasing and the product they are selling you and understand the market you are in.
4.Ask for and check customer, vendor and bank references of the lessor.
5.Avoid high-pressure sellers, as your chances of being misled are very high. If the lessor misrepresents themselves in any way, you can be confidant that your leasing experience will be negative.
6.Avoid giving deposits or advance rentals before receiving firm quotes in writing. Many disreputable companies will promise low rates in order to obtain deposits only to raise rates later while holding your deposit "hostage".
7.Google the leasing companies name along with your sales representative. Many disreputable, even well-known scam artists continue their illegal business, hoping for new customers that are naïve about their past transgressions.
8.Be careful when your lease is a $1.00 buyout. Make sure it is indicated in your lease documents and not just told to you. A few leasing companies instruct their sales team to say it's a $1.00. when it is in fact 10% or higher at lease end.
9.Avoid "Evergreen Clauses" or auto-renew clauses that automatically renew your lease after the initial agreed upon term unless you notify the company in writing prior to your lease end that you intend to end the lease on the agreed upon terms.
10.Lastly, like anything, look for a company that's been around for a while and has established credibility in the field.
Ultimately, the qualities you look for in any successful business apply here as well. Does the leasing company have a good reputation? Do they have experience and expertise? Do they have the ability and most importantly, the funds, to perform? And finally, can you establish a good, long-term, mutually-beneficial relationship with the leasing company that will help your company grow and prosper? If the answer to these questions is yes, you have found your leasing company.
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