If you have a startup business, you may have experienced difficulty purchasing or financing equipment. You may be focused on building your company’s credit history, but it takes time. However, your business needs machinery even if you only need computer systems. Equipment leasing may be your solution.

Benefits of Leasing Your Equipment

You should experience several benefits when you lease your equipment. First, the leasing approval process is much quicker than traditional financing. In addition, your machinery is delivered quickly, so you get what you need in a week rather than months.

You also don’t need to have a down payment saved when you lease. You can also negotiate lease payments, so they are more convenient. For example, if you have a slow period, you may negotiate not to pay a payment during this time. You can pay annually, bi-annually, monthly or quarterly, whatever is most convenient for you.

Your equipment maintenance may also be included in your lease. In addition, you consistently have access to the newest equipment. When your lease is over, you can choose to sign a new lease for a new piece of equipment. You may also decide to purchase the machinery you have been leasing.

Businesses That Qualify To Lease Equipment

Most businesses qualify for equipment leasing. Whether you have a startup or a well-established company, you should be able to find a company that will lease to you. Whereas some lessors require exceptional credit, others are willing to lease to companies with poor credit. Some companies even lease to businesses that have recently filed for bankruptcy. It doesn’t matter whether your company is large or small, there should be an equipment company that will provide you with a lease.

The Paperwork You Need

If you seek financing for your equipment, you may have to provide extensive paperwork, such as your business plan, cash flow statements for the last several years, balance sheets, tax information, etc. For a lease, you need your most recent financial statements and tax returns. You should also write a lease proposal that details the equipment you need and why the company should grant the lease.

Things To Avoid

When you are pursuing leases, avoid submitting your paperwork to multiple companies. This may lead to lease rejections. In addition, investigate the available lessors before you begin your application process, and only submit your application to the company that offers the equipment you need and whose lease application terms your company meets. Also, learn about any prerequisites the company requires.

If you are looking for an alternative to financed machinery, learn more about equipment leasing.

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