You’ve decided that equipment leasing is the best way to go for your next business decision. That doesn’t mean you should automatically pick the first equipment leasing vendor you come across. Here are four things to consider when comparing your options for equipment leasing.
1. Look at Leasing Minimums and Maximums
Different vendors offer different minimums and maximums when it comes to what amount you can lease. Before you even submit an equipment leasing application, check to make sure that your needs can be met by that specific vendor.
Some vendors might require a high minimum, which could prevent you from qualifying if you just need a lease for a small amount. Other vendors may not provide enough to cover your total needs. We cover a broad base of equipment leasing needs, with funding available between $10,000 and $5,000,000.
2. Compare Term Length
Your term length for equipment leasing is extremely important. A longer term allows you to save on your monthly payment amount. But this period also needs to match your anticipated life span for the equipment you’ll be leasing. Options ranging from 24 months to 84 months are standard for clients who choose us, for instance, offering a large degree of flexibility.
3. Consider Soft Costs
Anytime you lease equipment, you need to consider the associated costs as part of your financing plan. Soft costs include things like shipping, installation, and training. It’s important to make sure that your chosen vendor includes those costs as part of the lease deal, otherwise you could end up restricting your cash flow to cover those additional expenses. Most equipment leasing vendors do include soft costs, but it’s better to be safe and double check the total cost of your new equipment early on in the process.
4. Understand Eligible Equipment
Most people think of heavy machinery and equipment when it comes to leasing. But you can take advantage of equipment leasing benefits for a variety of business needs. Look for vendors who have extensive options in terms of eligible equipment. Healthcare, manufacturing, printing, agricultural, trucking, and even IT equipment could be leased with the right vendor. If you’re on an especially tight budget, you can also find a vendor who leases used equipment.
The Bottom Line
Once you’ve evaluated these four areas of any equipment leasing vendor, you can rest assured, knowing you’ve made the best-informed decision possible.