With a market size of $178bn, the US leasing industry is enormous. Millions of small and large companies lease their equipment every year, thus benefitting from lower upfront operating costs and access to better equipment and increased security. Whether you’re an established small business in your community or you’re just starting out, business equipment leasing could be the way for you to grow your revenue over the coming months.
Getting a lease isn’t very difficult, especially if you can prove that your company is profitable and that you can easily keep up with your monthly payments. A reputable equipment leasing firm like Noreast can approve you within a few days. That way, there won’t be any delays, and you can begin building your business right away. In today’s post, we’ll have a closer look at how leasing works and why it could be the best choice for you.
What Steps Do I Have to Take to Lease Equipment?
If you’re a small business that is well-respected in your local community, it won’t be hard for you to obtain the equipment you need. In fact, we work with both established and up-and-coming firms, as long as the founders can prove that they are financially stable. To make the application process as simple as possible, you should make sure you have all the relevant documents in place before you get in touch.
Once you’ve decided what equipment you’d like to lease and what your budget is, you can reach out to us at Noreast, and we will assign one of our professionals to your account. This leasing specialist will take you through your application process and help you select the best options. If you have special requirements, they can adjust the terms of your lease to suit your business model.
Take Stock of Your Financial Situation
Before you reach out to us, you should make sure you understand your company’s financial situation. Put together all the documents you might need during the application process, such as your trade references, bank statements, and financial statements. If you have been in operation for over two years and are looking for a small lease, it’s likely that we won’t ask you for much documentation.
However, new companies are considered riskier, so you may need to provide a personal guarantee if you are a startup. When the owners of a business provide us with such a guarantee, they prove to us that they are confident in the success of their firm and serious about their lease. Depending on the situation, we may also require business plans, supplier contracts, and pro forma financial statements.
Decide What Equipment You’d Like to Lease
Our customers lease all kinds of equipment from us. Sometimes, they come to us with a very specific need, for example, if they have been asked to complete a project that requires equipment they don’t own. But at other times, firms are either starting up or expanding and need a wide array of tools. Aside from office furniture, we also offer security equipment and specialized tools for catering businesses and construction companies.
In fact, you can even lease software from us, for example for accounting, advertising, graphic design, or business management. If you’re not sure which items you’d like to lease, make a list of everything you’ll need to run or expand your business. Then, you can decide which pieces of equipment could be leased.
Find a Reputable Business Equipment Leasing Company
There are many lenders out there that offer leases, and some specialty equipment stores have their own programs. But small businesses are almost always best served by an equipment leasing company that offers a broad range of products. Here at Noreast, we can help you find tools, machinery, and software, and you won’t have to deal with each vendor individually.
When you reach out to us, we will assign you a specialist who can take you through the various options. They will discuss the items you’d like to lease and work with you to find the best brands for your business. Then, they can help you compile all the documents you need for your application. Instead of having to deal with various vendors’ requirements and customer service teams, you will always work with the same person when you reach out to us.
Determine the Terms of Your Lease
Not every lease is right for every business, and we’ve developed a wide range of agreements that can suit various situations. The most common lease term is 36 months, although you might opt for 12 months if you anticipate a change in your business or 60 months if you know you’ll use the piece of equipment for a long time. Depending on your situation, payments will be monthly, quarterly, or even annual.
We also offer step payments, which start out low and then increase over time, and delayed payments, which allow businesses to use the equipment for several months before they start paying. Such arrangements are especially suitable for startups and firms that anticipate steep growth in the near future.
Apply for Your Lease
With the help of your assigned business equipment leasing professional, you will select the products you need and then complete your application. You will need to state when you’d like to start using your items, where you need them delivered, and what you will do with them. We will perform a credit check and verify your documents to make sure you’ll be able to pay.
It shouldn’t take more than a few days for you to receive an answer from us. We will provide you with a lease agreement, which you can sign and send back to us. We can then provide you with your equipment as soon as you’ve paid the security deposit.
What Are the Advantages of Leasing Equipment?
Business equipment leasing is straightforward and practical. Whenever you need new furniture, tools, or machinery, you can speak to your experts at Noreast and request a new lease.
Because you don’t need to pay for your items in full upfront when leasing, you will have more capital available to expand your business. What’s more, you may be able to access better equipment than you otherwise could, and you won’t be putting yourself or your firm at risk in the process.
The main reason why people opt for a lease to finance heavy equipment is that it allows them to control their expenses more easily. When you’re just starting out or you’d like to expand your business, you might not have the necessary capital available to purchase all the equipment you need. With a lease, you can avoid a lengthy fundraising process and grow your operations much more quickly.
Because you and the leasing company will agree on the terms in advance, you’ll know what your future monthly expenses are. This allows you to budget and manage your company’s finances better.
Access to Better Equipment
If you purchase a piece of equipment, you want to maximize your investment. It can take years for you to make a profit after buying several pieces of heavy machinery. This can be a big problem because businesses and industries change on a regular basis. Over time, you might want to modify the way your company operates, but this is hard to do when you own a lot of expensive equipment.
When you lease, you can avoid this problem because you can give back your equipment once the term is up. That way, your business retains its flexibility. If you decide that you want to go in a different direction, you can quickly and easily purchase new equipment, and if you no longer need an item, you can give it back without losing money.
Lower Risk to You and Your Business
Business owners who work with a great leasing company such as Noreast don’t run the risk of purchasing substandard equipment. We only work with the best vendors, so you’re sure to be happy with the quality of your items.
What’s more, we will take care of any problems. Companies who lease don’t have to worry about their equipment malfunctioning because the lender is there to assist them. If your machine or software doesn’t live up to your expectations, you can simply get in touch with your account manager. They will help you resolve the issue and make sure that your piece of equipment works well.
A wide variety of businesses, from catering firms to building companies, lease their equipment. By working with a reputable business equipment leasing company, you can lower your upfront costs, gain access to the high-quality equipment you need, and lower your company’s risk levels. The process is very easy and only takes a few days, which prevents any delays to your upgrade or expansion.
The best way to get started is to figure out what equipment you need and then discuss your options with our experts. Call us now at Noreast Capital Corporation to find out more about the various leases we offer. We will assign one of our professionals to you and they’ll handle all matters related to your account. That way, we can better tailor our services to your needs, and you can always reach out to the same person whenever you have a question.