Equipment Leasing Tips for Startups
As you look for ways to finance your startup, the equipment can be a major expense. Rather than going into more debt to launch your startup, discover how equipment leasing can give you the tools you need to grow your business and begin providing your essential products and services.
Depending on your business, you may be surprised at the wide range of equipment available for lease. From major construction machinery and specialized medical equipment to basic tools, vehicles and computer equipment, there’s a diverse range of leasing options available to secure the necessary items you need to launch your startup.
An equipment lease allows you to get started quickly with the right equipment. Check with your lender to determine the correct application procedure. For many, you may need a credit check, financial history and sufficient proof of cash flow. Others require less but may have a less favorable payment plan to cover the additional risk.
Your lease terms can vary a great deal. Depending on the cost of the equipment and your financial situation, you can make weekly, monthly or even annual payments. The length of the lease is determined ahead of time, anywhere from a few months to a few years. Once the lease is over, some lenders allow you to determine the next step. Whether you wish to purchase the equipment at a discounted rate, renew the lease or upgrade to a lease on a new model of the same equipment, there’s a great deal of flexibility when your lease ends.
In order to receive the best chance of getting great terms on your equipment lease, study your options carefully. Like a loan application, you may not wish to submit multiple lease applications at the same time. Carefully review each option available to you and find the best lease for your particular equipment and situation. Some leasing companies won’t work with a startup and require at least two years of financial statements. Others are much more willing to give you the initial lease you need to start your business.
Finally, equipment leasing is a serious contract. Take time to fill out the application thoroughly and understand all the terms and conditions that apply. Failure to follow your lease application could result in you losing your essential equipment. Start your business on the right foot by choosing the best leasing program and keeping up with your payments for all your leased equipment.