Business Equipment Leasing & Financing: 5 Tips To Know

A business will seek out resources to fund new equipment for many reasons. For instance, as a company grows, it may need more resources to purchase more equipment to help expand. Or perhaps they’ve pivoted into a new area of industry but need help to get the equipment they need to make the full transition. Regardless, businesses need equipment to operate, and often, it’s not as easy as using a corporate credit card to make a purchase. To help you navigate this process, we’re sharing a few tips to help you navigate the business equipment leasing and financing process.

SHOULD YOU FINANCE OR LEASE EQUIPMENT?

Business owners find themselves wondering if it’s better to finance or lease equipment. There are many variables that come into play with that question. They may seem like similar options, as payments are spread out over a predetermined period of time, but there are other distinct differences. We’ll do our best to educate you on the ins and outs of both options so you can make the best choice for your business’s needs.

FINANCING:

When you finance business equipment, you own the equipment outright. You maintain ownership during and after all payments have been made.

LEASING:

When leasing equipment, the lender owns the equipment, and you pay for the use of it. Now, there are different types of leases available. Here is a look into our leasing program that helps businesses secure the equipment they need with less financial risk.

Our equipment leasing program includes three options for companies that have been in business for at least two years:

  • Applications up to $150,000: 24-hour approval with no financial statements required.
  • Middle market up to $500,000: 3 to 5 business days for approval.
  • Large ticket over $500,000: 3 to 5 business days for approval.

This program covers nearly any kind of business equipment with a variety of payment structures and small down payments or no down payments. So, even businesses with low cash flow will be able to acquire equipment.

OTHER LEASING PROGRAMS:

Sale and Lease Back Program: We can buy your equipment and lease it to you in payments, giving you access to cash quickly. You regain ownership once all payments have been made.

Startup Business Program: Our startup program offers leases to companies in business less than two years. We structure the lease with your goals in mind.

B, C, and D Credit Rating Program: Even if your company experienced a financial setback that damaged your personal credit, we can structure an equipment lease to help you maintain operations and rebuild your business.

Government and Municipal Programs: The rates for our government and municipal program are based on the agency rating. We provide leases for the following entities:

  • Federal and state agencies
  • Military services
  • Public schools
  • Libraries
  • Police and fire departments

Once you decide on the best option for you and your business, here are a few tips to keep in mind as you navigate next steps.

TIP 1: Be ready to clearly make a case for why you need the new equipment and how it will benefit your business. A financing provider may want to know things like projected revenues and cost savings gained from this new investment.

TIP 2: Get organized! Organize your financial records and be ready to explain any past financial issues. This could negatively impact your

TIP 3: Review your business credit report and update any information that is not accurate before contacting your equipment lender. If anything negative shows up, be ready to explain it.

TIP 4: Avoid submitting multiple business equipment lease applications to various companies.

TIP 5: Combine multiple business equipment purchases under one lease. Plan ahead to determine what equipment you will need and bundle the leasing into one single payment.

We hope you’ve enjoyed reading about how to find the right business equipment leasing and financing option. If you still have further questions about what financing option would be best for your future goals, please contact us by submitting a form online, email us at info@bccfirm, or give us a call at 404-602-9100. To stay up to speed on all things Barrington Commercial Capital, follow us on Facebook, Twitter, and LinkedIn. And lastly, sign-up for our monthly email to stay informed of the latest commercial capital options available to you and your business.

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