How Choosing The Right Leasing Partner Can Affect Your Business

If your business involves manufacturing goods, selling goods, warehousing or any other type of customer-oriented process, you will need equipment in order to operate it successfully. This would normally mean investing a considerable amount of your start-up funds into purchasing what you need. The smartest way to avoid bankrupting your business from the start by increasing your overhead is to lease the equipment, usually at an attractive monthly rate, with affordable terms. But how do you go about choosing the right leasing partner?

Why a Leasing Company?

The right leasing company can save you thousands of dollars every year in overhead by providing you the equipment you need to operate your business, at a fraction of the cost. Just outfitting today’s business office, even one department, like customer service, for example, can mean investing thousands of dollars in computer terminals, servers, phone lines and personnel. Instead, a good leasing company can provide you with all the equipment you need, plus service and other amenities for a few hundred a month, instead.

The range of leasing companies out there can be as varied as private businesses themselves. There are small companies that cater to both consumers and businesses alike, and can be availed upon to rent everything from kitchen equipment to furniture to computers. Still others are larger chains that specialize in the needs of particular business sectors, like manufacturing, printing, hospitals and automotive. And, then there are the corporate owned lease agents, backed by inexhaustible funding from parent corporations. Which one you choose will depend upon criteria that should be exercised so that you can make the correct choice.

What to Look For When Choosing the Right Leasing Partner

You can get referrals through networking with other business owners, or you can search for leasing companies through the Internet or advertisements in trade journals. However you find candidates, there are certain criteria to keep in mind when checking these firms out. Prospective candidates for your business should have the following qualities that will make them viable partners for leasing equipment for your business needs: experience, expertise, good reputation, the ability to perform to your expectations, and the ability to forge a good working relationship with you.

During your interviews with potential candidates, pay close attention to their responses concerning working with others in your field. This will give you an idea of how much experience they have in providing the type of equipment necessary for operating your own business successfully. Be sure to ask about the terms of their leases, including monthly payments, renewal fees, repair and replacement conditions on the equipment, and upgrades on equipment. Most leasing companies will offer special programs on certain types of equipment, and may offer free upgrades on leased items when new advances in technology come along.

The Final Decision

One important factor in making your final decision may concern whether or not you should work directly with a leasing firm, or to go through a leasing broker. A broker acts through placing your lease with any firm they have an arrangement with, and your lease will be forged with the broker, not necessarily with the actual leasing agent. This can make the difference when it comes to servicing the equipment you lease, and you may wind up paying fees that you may have been able to avoid by dealing directly with the leasing agent yourself.

Finally, when narrowing down the list, get bids from the final candidates. Leasing equipment is a market driven field, and by getting as many bids as you can, you should be able to achieve some benefits from competitive pricing and terms of the lease. Never, ever, give deposits in advance. All monies exchanged should be done at the creation of the lease contract, with assurance of delivery, not in advance. The choosing of the right leasing partner can be the most crucial business decision you will make during your start up, so do your homework and consider all elements presented before making your final decision.