Equipment leasing programs, offering credit for almost everything from computers to delivery trucks to corporate jet planes, finance more than $200 billion a year of equipment acquisitions. Though leasing provides low-risk, low-interest financing, credit, billing, and tax advantages, it’s an intricate form of capital financing unfamiliar even to most savvy businesspeople and lawyers. Equipment leasing finance tips from Credit Cards for Leasing Success (CCLSP) can help you through the maze of confusing legalese. Start by reading the article. Then contact a certified financing expert for assistance. Here’s what they say:
Credit card companies for equipment leases can offer favorable financing terms and options that can seem almost too good to be true. Don’t take their words for it. Equipment leasing finance tips from Credit Cards for Leasing Success (CCLSP) point out several considerations you need to keep in mind as you shop for the perfect financing package. They include:
Most business owners agree that equipment leasing can be a terrific way to finance growth. Unfortunately, many of them are not aware of the terms and requirements of equipment leasing contracts. When the CCLSP team examines the business owners’ financing needs they look for certain things.
They want to know if the business owners have an experienced leasing attorney on hand to guide them through the leasing process. Ideally, a seasoned leasing attorney will work with business owners to create a well-written lease agreement, which spells out responsibilities and financial penalties for both parties, and ensures that the transaction avoids pitfalls and complications later on.
Equipment leasing finance tips from Credit Cards for Leasing Success (CCLSP) also indicate that entrepreneurs should avoid financing a project through their local chamber of commerce, or other similar economic development association. While these associations may be useful sources of information and support throughout the equipment leasing process, they are not as effective as financing options provided by credit cards for lease payments.
For starters, entrepreneurs won’t have their best foot forward when negotiating capital lease agreements with equipment leasing companies. Moreover, the local chamber of commerce may be slow to approve capital lease applications from companies that have less than stellar track records.
Another tip for financing a small business is to consider working with equipment leasing financing companies instead of banks. By partnering with these third-party financing sources instead of banks, entrepreneurs will experience significant advantages.
First, entrepreneurs will have more control over cash flow and resource usage. Second, these third-party lenders often offer better interest rates and terms than banks. Third, by partnering with equipment leasing finance experts instead of bankers, entrepreneurs have the opportunity to gain additional expertise and better working relationships.
Although there is no single piece of advice that can provide a single magic bullet for a struggling start-up, there is one golden rule that every smart entrepreneur needs to know. No matter how well a business is run, no matter how good the financial plans, no matter how sound the business plan is, if a business doesn’t have a sound equipment leasing agreement in place, it will not go very far.
This is why entrepreneurs need to work with a reputable equipment leasing expert as early as the planning stages of the business. The leasing process should be thought of as a partnership between the owner and the business. A good lessee will not only help guide the entrepreneur through the equipment leasing process, he or she will also help guide the entrepreneur through every step of the growing business.
