According to the Small Business Administration, only half of all new establishments survive for more than five years. Alternatively, one-third of businesses manage to make it past the ten years mark. Unfortunately, this statistic is far from surprising as young businesses typically struggle with insufficient cash flow. It is, therefore, extremely crucial for businesses to manage cash shrewdly - for survival purposes as well as expansion.
This may present a challenge as “it takes money to make money.” As you know from our previous articles, there are many benefits to investing in new equipment. However, always keeping up with the latest model is a costly initiative.
Fortunately, there is a solution to this problem. Business owners can turn to equipment leasing companies for help. A wide variety of equipment can be acquired through leasing - from restaurant equipment to construction vehicles to medical devices.
But what should you look for in equipment leasing companies? We’ve compiled 5 characteristics that every leasing company should have.
As a business owner, you’re forced to learn a lot of skills that you wouldn’t be a responsibility if you weren’t a business owner. When choosing the right equipment financing company, make sure they have the experience you require so that you can let the experts do the work. Because, in all fairness, you have to focus on other business task.
A helpful tip is to ask questions and expect a firm response. Don’t take “I’m not sure” as an answer. If a prospective leasing company wants to win over your business, then they must be knowledgeable. Make sure they are experienced in your industry, too. After all, you want to be able to turn to them for advice, correct?
With so many competitors out there, business relationships are what sets one vendor apart from the next. Choose an equipment leasing company that has a genuine interest in your success. They should take the time to establish a partnership with your business, learn about your specific needs, and devise a tailored plan that has your best interest in mind. Because in all honestly, when you grow they grow, right?
3) Turnaround Time
Another important point to consider when analyzing equipment leasing companies is the time taken to process an application. Look for a company that is upfront with turnaround times. That way there is no guessing how long it will take.
The best equipment leasing companies strive for quick turnaround times as they realize time is of the essence. They understand that in these types of situations any delay in process can certainly result in loss of sale.
4) Terms and Conditions
Lastly, it is important to check the terms being offered. Ask the leasing company the following questions:
- What will the tenure of the loan be?
- How flexible are the terms and conditions?
- Are there any hidden costs involved?
When it comes to term and conditions, the most important aspect is, obviously, the financing rate being offered.
Read the fine print. A trustworthy equipment leasing company will be straightforward in their communications. Reputable companies realize that their success is your success and want to build a fruitful relationship.
The Bottom Line
Making a decision on which equipment leasing company is the right one for you is a major decision. While this may require time and effort, choosing a trustworthy provider will be a game changer for your business. If you’re looking for a reputable equipment leasing company, check us out and see for yourself why we've been leasing equipment since 1988.