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Is It Difficult for a Small Business to Get an Equipment Lease?

When starting or expanding your business, you will need equipment such as furniture, electronic devices, and software. You can either choose to buy them outright or to borrow them using a lease or loan. The latter option is often preferable, especially for small businesses that might not have the resources to buy all the top-notch tools they need. An equipment lease allows you to conserve your capital while remaining flexible at the same time.

But how hard is it for a small business to receive such a lease? Will it be prohibitively expensive? The answer is that several factors affect your eligibility, and they include the age of your business, your financial stability, and the size of the lease you are asking for. Today, we will have a closer look at how we evaluate businesses and what you can do to increase your chances of a positive outcome.

How Hard Is Getting an Equipment Lease? 

It’s not always easy for a small business to get started. If you have a physical location, you will need to pay for staff, rent, furniture, and professional equipment. Having to pay for everything upfront might make it almost impossible for you to open a new branch. However, this isn’t usually the case. Lenders such as Noreast Capital allow you to lease your equipment so you can spread out the cost and allow your business to grow before you pay.

When considering you for a lease, we will take several factors into consideration. Depending on your company’s age and the profit you are making, we might offer you a lease line of credit. When you’re ready to borrow your first piece of equipment, you won’t have to apply again, and we will simply be able to provide it. Your personal account manager can let you know how much you may be able to borrow.

The Age of Your Business 

A crucial factor is how long you have been in operation. Most lenders prefer companies that have been running for at least two years because they have had time to become established and make a profit. Such businesses have records of their sales and expenses, which allows creditors to see whether they are making a profit and how much they will be able to pay.

However, just because you’re a new business doesn’t mean you won’t be eligible. There is a chance that you can borrow from us even if you are just getting started. To make a decision, we will look at the financial background of the owners. You will almost certainly have to back your lease with a personal guarantee in such a case, and we might ask you for additional documentation like your business plan or your supplier contracts.

The Financial Health of Your Business 

Every high-quality lender will do their due diligence before issuing a small business with a lease. When you apply to Noreast Capital, we will require you to provide certain financial documents. They include bank statements, trade references, or financial statements. To make the process easier, you should have all your paperwork in place before you contact us.

Once you have provided us with the necessary documentation, the equipment lease application process is surprisingly straightforward. Depending on the size of your lease, you might receive an answer within a few hours or a few business days. You can then select the tools that best fit your needs and either pick them up or have them delivered to your location.

The Size of the Lease 

Before providing you with a lease, we will check that you are able to handle the amount you applied for. Smaller and newer businesses should get started with a minimal amount so that they don’t run into problems later on. As your company grows, you can then increase the size of your debt to help you expand faster.

In general, amounts under $50,000 are reasonably easy to receive. If you are an established firm, you won’t even have to provide us with financial statements, and the application is a simple one-page form. Any amount over this threshold will be checked more closely since your monthly payments could be substantial.

Ways to Ensure Eligibility 

As you can see, getting a lease for your business isn’t extremely difficult, but lenders do check that you have a sound financial background. The process is easiest for businesses that are over two years old and are able to demonstrate solid and steady performance. If you don’t fall into this group, there are several ways you can ensure eligibility.

For example, you can back your lease with a personal guarantee, which means that you will be liable if your business can’t pay. Alternatively, a guarantor with a stable background could help. Your account manager might ask you to provide documentation such as your business plan, resumes from the company’s founders, and pro forma financial statements, which can prove that you are experienced in your field and on track to make a profit.

Why Leasing Could Be a Great Strategy for You 

Getting a lease is possible for most businesses, but it will take some time and effort. Is it worth the hassle? In most cases, the answer is yes. Not only can you conserve your precious capital, but you can also remain flexible and adapt to changing market conditions more quickly. The type of lease you get can be tailored to your company’s needs, and you can choose from a wide variety of equipment, no matter what industry you operate in.

Conserve Your Capital 

Arguably the most important reason why you should lease your tools is that this allows you to conserve your money. If you are a new business, you might not have the option to buy everything you need, so leasing is the way for you to start out with high-quality equipment. For more established businesses, it is a way to grow faster and reinvest your capital to expand the company.

When opening a new branch, you might have to pay for additional employees as well as rent. This can be enough of a financial burden, and leasing the furniture and equipment can take some of the pressure off. That way, you might be able to expand faster and therefore make more of a profit in the long run.

Retain Flexibility

Another key benefit of an equipment lease is that you don’t have to lock yourself into an expensive deal. Our terms are often between 12 and 36 months, and at the end of the lease, you can choose to keep the tool, give it back, or take out another lease. If your needs have changed or the market is different, you can simply choose something else.

This is particularly important when it comes to equipment that is time-sensitive, such as electronic tools and software. These items need to be updated frequently, but they can also be extremely expensive. By getting a lease, you can stay on top of current trends and upgrade much more frequently, since you didn’t spend all the money upfront.

Choose a Plan that Suits You 

Every company is different, which is why we at Noreast Capital offer such a wide range of leases to suit various needs. If you already know that you would like to buy the equipment at the end, you can go for a capital lease, which allows you to purchase the objects at a minimal price, such as $1, once your lease is up. If not, you can opt for a contract that offers you multiple possibilities at the end, such as giving back your equipment or upgrading.

Brand-new business might benefit from a special contract that doesn’t require payment for the first few months. You will be able to build up a clientele before having to worry about paying for your equipment. Similarly, seasonal businesses can pay less during the quiet months and more when they are busiest to prevent cashflow problems.

Choose from a Wide Variety of Products 

In terms of the equipment you can lease, there is an enormous variety available. In addition to furniture, you can also choose from a wide range of industry-specific tools and electronic gadgets. In fact, we even offer software for accounting, client interaction, graphic design, and more. No matter what you need, you should speak to our customer service team, who can present you with all the options.

Getting an equipment lease can be a challenge for small businesses, but it is not impossible. As long as you have a good financial history, have been in business for a few years, or are willing to personally guarantee the lease, you should be able to borrow all the equipment you need. The best way to find out more is to get in touch with a lending company and explain your situation.

You will be allocated an account manager, who can take you through the application process and help you increase your chances of getting a great deal. They might speak to you about the kinds of financial documents you need to provide and how much equipment you can expect to borrow. Call us today at Noreast Capital to find out more and open your lease line of credit.

Business Equipment Leasing: What Sort of Equipment Can Be Leased?

Setting up or expanding a business can be challenging, especially because you have to pay for the space, the workforce, and all your equipment at once. A possible solution is business equipment leasing, which allows you to spread out the cost of your items and remain more flexible. There is a wide range of different options and products available, both physical and digital.

A large lending company such as Noreast Capital can help you gain access to almost everything your business needs: furniture, large electrical items, an HVAC system, and even software. Small and mid-sized businesses can benefit from this because they can expand faster, invest more money in expanding their operations, and exchange old equipment more frequently.

What Equipment Can Be Leased?

Whether you’re thinking of starting a new business or you’re already running a company and hoping to expand, leasing could be a great option for you to make it happen. The main advantage is that you can gain access to the equipment you need without having to make the high upfront investment. This could allow you to grow your business faster or get started at a much lower cost.

There are almost unlimited types of equipment you can lease, and they cover the majority of business ventures. For example, you can borrow restaurant equipment, office furniture and electrical devices, security equipment, and even software. No matter what your needs are, you should get in touch with Noreast Capital to find out whether we have the suitable tools for your business.

Large Pieces of Restaurant Equipment

If you’re setting up a new restaurant or expanding your current one, you might not have all the capital you need to purchase the large pieces of equipment required. In such a situation, you can simply lease them, either temporarily until you can buy, or permanently. That way, you can reinvest all your profits instead of spending them on expensive gadgets.

At Noreast Capital, we can lend you a wide array of tools you need to set up your restaurant or catering business. This might include refrigerators, ovens, dish machines, beverage dispensers, fryers, and ranges. In addition, we can also provide you with furniture if you would like to offer onsite dining, and we can help you to access an HVAC system that suits your venue and local climate.

Office Furniture and Tools

There are a wide range of businesses that require offices, and not all of them have the resources to immediately purchase all their furniture and tools. For this reason, these items are one of our most popular classes of equipment. We can provide you with photocopiers, telephones and the associated cabling, printers, scanners and other graphic design equipment, and furniture such as desks or chairs.

By making use of business equipment leasing, you can expand your operations faster and add more space to the office without having to worry about the cost of the equipment. In fact, we have different types of leases that suit a wide variety of businesses, so you can choose to start repayments immediately or to delay them. If you have a seasonal business, we can even charge you less during the months you don’t have cash coming in.

Security Equipment

Every physical business needs to be adequately protected from crimes such as theft, burglary, or vandalism. Some of the best types of security are cameras either outside or inside and an alarm system, but there are other options that could be suitable, depending on the type of business you run and what assets you keep at the premises overnight.

Because security equipment can be extraordinarily expensive, you should consider starting out with a lease. If you decide to remain on the premises and you like the system, you can always decide to purchase your equipment at the end of the lease term. However, starting out by lending can help you avoid the large upfront investment that comes with high-quality security.

Software

Borrowing physical items isn’t the only type of business equipment leasing that exists. In fact, we can also provide you with the software necessary to run your company. As you may already know, it can be expensive to purchase software for advertising, accounting, graphic design, or business management upfront. If you don’t know whether a certain tool is right for you or you don’t anticipate using it long term, a lease could be a much better option for you.

In addition to the fact that you’ll pay less, you can also deduct leased software from your taxes. That’s why countless other businesses have decided to choose this option and are now gaining access to the newest technology without having to spend thousands upfront. What’s more, because the lease term is limited, you’ll be able to upgrade to newer versions of the same software as soon as it comes out.

Is Business Equipment Leasing for Me?

Now you understand what kinds of products we lease, you might wonder whether this is the best option for you. After all, isn’t it more expensive to lease than to purchase items upfront? The answer is that it depends. Although it can be cheaper to buy everything, starting your business might require a lot of different types of equipment, which means you’ll have to take out loans. This can be more expensive than a simple equipment lease.

What’s more, you only pay a low monthly fee when you lease, which means that you get to keep your money for longer. If you reinvest it into the business wisely, you could make a return that far exceeds the amount you’d save by buying upfront. That’s why many smart CEOs and business managers opt to borrow their equipment and pour all the resulting resources into expanding their company.

You Want to Get Started Now

Some companies who get a lease from us are startups that are opening their first office. Because it’s rare that such a business already has significant assets, they usually only have two options: get a loan and purchase equipment upfront or get a lease. As mentioned, the former option can be more expensive, particularly if you are not well-known yet and are therefore unlikely to get the most advantageous interest rate.

That’s why leasing could be a much better deal for you. There are many different types of leases offered, so you’re sure to find one that suits your individual needs. For example, you could postpone payments for the first few months, which gives you a chance to get set up and begin trading. Then, you can pay increasing amounts as your business expands and grows. This delayed payment can give you the boost you need to become successful.

You Want to Expand

We also work with mid-sized companies that are established in their community and are looking to branch out. You may increase your office space, set up a new branch somewhere else, or break into a new market. These changes become accessible to you with a leasing program, and you can grow your operations much faster than you could if you had to use your own money to purchase everything.

You Need Equipment for a Short Time Period

Not every office and workspace is permanent. At some point, you might have to set up a temporary space as you work on a particular project or complete an assignment. It makes no sense for you to purchase all the equipment needed for this, especially as you won’t be able to sell it on for much money once it has been used. In such a situation, leasing is the most attractive option because you can avoid a large expense that doesn’t serve your business.

You Need the Newest Equipment

New products come on the market regularly, and leasing can help you remain flexible in what items you use. When one of your tools becomes available in an updated form, you can switch to the newer version as soon as your current lease is up. In this way, your business remains on the cutting edge and attracts more customers because you have embraced leasing.

Business equipment leasing is a great strategy used by many successful small and mid-sized companies. Whether you are looking to set up for the first time or expand an established company, you can access the items you need without having to deal with a large upfront cost. Instead, you can spread out payments over many months or even years and therefore reinvest more money into growing your business.

We offer a wide range of equipment that can suit many businesses. For example, you can lease electrical devices needed for a restaurant, security equipment, office furniture and tools, and software. When your lease is up, you can give your items back, purchase them, or upgrade to a newer version. Call or message us now at Noreast Capital to find out more and to speak to one of our leasing experts. We can help you find the perfect deal.