Business equipment leasing is growing at a rapid rate, as more and more firms are realizing that they don’t have to spend their cash upfront on the tools they need. If you’ve never borrowed equipment before, you might be wondering how you can gain access to business leasing and whether this is a complicated process. Fortunately, it is quite straightforward, and most companies are eligible.
Once you know what items you want and have compiled all the financial documents you might have to provide, you simply have to contact a lender. They can help you get what you need within a few days, and you’ll have your own account manager who can assist you throughout the process. Let’s have a closer look at how equipment leasing works and whether it’s the best option for your firm.
How to Access Business Leasing
The equipment leasing industry has expanded rapidly in recent years, as more and more businesses are making use of the benefits of spreading out the cost of their purchase. Great deals are easiest to access through a comprehensive lender who works with many companies offering business tools. That way, you can get everything you need from the same place and benefit from better rates as a result.
To get started, you need to work out what you actually need, then have a look at your financial situation to find out how easy it will be for you to access a lease. There are several things you can do to increase your creditworthiness. Once you have an idea of where you stand, you can get in touch with a lender like Noreast Capital, who will pair you with a dedicated account manager. This professional will help you access financing within a few business days.
Take Stock of What You Need
The first thing you must do is decide what items you’d like to lease. While some businesses decide to purchase some tools upfront, others borrow everything they need to get started. This latter option could be useful if you don’t yet know how your company will develop over the next few years and you want to remain flexible.
Keep in mind that you can borrow a wide range of equipment, and this goes beyond physical items such as desks, chairs, electronic devices, and an HVAC system. In fact, we also offer various types of software you might need for designing, accounting, and interacting with your customers. Before making a final decision, browse your lender’s website to see what’s on offer, or get in touch with them and ask.
Figure Out Your Financial Situation
Most businesses are eligible for leasing. However, there is an application process, during which your credit will be checked. Lenders generally prefer working with companies that have been in operation for at least two years and have a good credit rating. We might also accept newer businesses or startups, but the founders will need to have a high credit score.
You can increase your chances of getting a good deal by offering a personal guarantee, which means that you will be responsible for paying if the business fails to do so. What’s more, you can offer us business plans and financial statements. Such documents can demonstrate that your company is viable and making a profit. If you’re hoping to borrow equipment that is very costly or you’re a new business, this might be a requirement.
Get in Touch with a Lender
After figuring out what you need and compiling your financial documents, you can get in touch with your lender and start the application process. In many cases, this will be very simple, so it’ll take you only a few minutes. If you are looking to borrow less than $50,000, you should receive an answer from us within one hour of sending in your application.
Businesses that need to borrow more expensive items might have to wait for one to two business days before receiving an answer. If you’d like to ensure access to a lease, you can open a lease line of credit ahead of time. With this option, you’ll have financing in place whenever you are ready to start using the equipment.
Why Lease Your Equipment?
As you can see, getting business leasing isn’t very complicated, and it can be set up very quickly, as long as you are well-prepared and in a good financial position. But is it the best option for your business? Why do so many companies choose to lease when it is generally more expensive than buying products outright? There are many reasons why you might choose this option.
Most commonly, companies want to keep their capital and reinvest it into expanding their business more quickly, instead. However, you might also benefit from a lease if you’re a new firm and don’t yet have access to large amounts of money. Borrowing equipment can help keep your business more flexible, so you can change directions or benefit from innovations more quickly.
Keep Your Capital
The primary reason most businesses opt for leasing is that it allows them to keep their money. Many of the companies we work with have very solid business plans, and they can use their capital to expand their operations and make a profit. In this way, leasing can lead to higher revenue, and the small additional cost is well worth it.
Similarly, small startups might not yet have the money needed to purchase everything they require. They can opt for either a loan or a lease. The latter is more flexible and can provide them with better value. Over time, they will build up more capital, and they can then choose to either upgrade the lease or pay off the items and keep them.
An additional benefit of leasing is that your firm retains much more flexibility. When you buy a large device or machine outright, you might have to use it for 5-10 years to make the purchase worth the cost. By that time, the piece of equipment might be outdated, or your business may have gone in a new direction.
Our lease terms usually run between 12 and 60 months, and you have control over what happens in the end. If you are still happy with the equipment, you can buy it off us, but if you’d like to upgrade or choose something different, you can give it back and sign a new lease. That way, you can more easily adapt your operations to changing market conditions.
A Lease for Every Business
At Noreast Capital, we understand that every business is different, and we want to help you achieve your goals more efficiently. For this reason, we offer a variety of leases which can suit various companies. Because leasing is so flexible, you will never have to worry about being left behind or not being able to afford the newest technology. Your dedicated account manager can help you find the terms and duration that best suits you.
Keeping Your Options Open
When you first speak to us, we will discuss what your goals are and why you are taking out a lease. There are certain contracts that specify what happens at the end. For example, a capital lease transfers ownership of the item to you for a token sum once your lease term is up.
However, there are other options that have a more open end, which means you can delay making a decision until the end of your lease. That way, you can test out the item and see whether it’s a good fit. If so, you might want to buy it from us. Alternatively, you could give it back and upgrade, or you could return it and end your lease.
Some businesses have special requirements, and we can cater to that. For instance, very new companies or firms that are setting up a second office might not immediately see a return on their investment. We can help you by delaying your payments for a few months, so you can focus on gaining customers and getting set up.
Other companies, such as accounting firms, have a seasonal business model. We can tailor your lease to these fluctuations in income, and you will pay us more during your busy season and less during the quiet times. Your account manager can speak to you about these options.
If you need equipment but don’t want to spend a large amount of cash, business leasing could be the perfect way forward. You simply figure out what you need, gather all the documents to prove you are a responsible borrower, and then speak to a lender who provides the items you need. The process is usually quick, and you may get your lease in place within a few business days.
There are many benefits to leasing your tools, the main one being that you keep your capital and can use it to invest in your business. This will allow you to grow much faster and at a lower cost. What’s more, you’ll be more flexible, and you can access updated or innovative products that would otherwise be out of reach. Contact us today at Noreast Capital to find out whether you qualify for a business equipment lease.