Produced by John Elliott of Leaseworld.org
Equipment leasing is widely used by all types and sizes of business to acquire equipment they need to run and grow their operations and that is why it is important to find the best equipment financing company to work with.
Here are some simple guidelines you can use to assist in your decision-making process when looking for a good equipment financing company:
- Ask the equipment supplier which equipment leasing company they use and/or other leasing companies’ customers have used in the past when they have purchased from them
- Ask an industry related company, colleague or competitor if they could recommend any equipment leasing companies to you
- Check with your Accountant, Bookkeeper, Bank Contact, or Attorney for a recommendation
- Call your local Chamber of Commerce or Industry Association for recommendations
- Investigate related equipment suppliers to see which equipment leasing companies they are partnered with to offer customers financing options
- Check the major equipment leasing associations. In the USA – https://www.elfaonline.org/ & in Canada – https://www.cfla-acfl.ca/
Once you have some names of some equipment leasing companies to evaluate, be sure to investigate the following before making a final decision:
- Types of equipment leases they offer and what type you are looking for; capital lease, residual lease, fair-market-value, operating, etc.
- Ask for proposals from at least three companies to compare rates, payments, terms, and end of term treatment.
- As for a blank copy of the equipment lease contract to review
- Ask for customer referrals from similar financing projects the equipment leasing company has been involved in
- At no point should the equipment leasing company ask for any fees upfront (i.e. application fee)
- Evaluate and make your final decision based on experience, expertise, reputation, performance, and ultimately who you feel comfortable building a relationship with.
As an online tool, www.equipmentwallet.com is well suited for this type of scenario as is matches businesses with ideal lenders based on their criteria and they in turn provide financing bids. The system only allows lenders to bid a certain way which keeps things “apples-to-apple” for easy evaluation.