Once a company has chosen the equipment it wants to purchase, the next step is to decide how to pay for the purchase. In recent years, equipment leasing has become the preferred method of financing equipment for small and medium-sized businesses. However, choosing the best equipment leasing company to work for has its challenges. In addition to obtaining a desirable secure lease rate, businesses must consider hidden fees, lease terms, and the risks of unreliability or scam. It is crucial that companies thoroughly research each prospective equipment leasing company and look for key indicators of a company that is a better fit for the acquisition’s needs.

Equipment leasing companies differ in many ways, whether it’s the specific industries they serve, various types of leasing agreements, transaction amount, or types of equipment accepted. Some equipment leasing companies may only focus on a single industry, such as agricultural, office, or printing equipment, while others focus on specific types of equipment. Businesses can offer a wide range of lease types or can stick solely to a fair market value lease option. There are companies that vary according to the length of the term and/or the total amount of financing. While some offer financing up to $2,000,000, others can only stick to small transactions under $100,000. Choosing the best equipment leasing company to work for depends on many key factors, including the size of your business, your geographic location, the type of equipment you need.

Once equipment leasing companies have narrowed down to your personal criteria, it’s important to look for qualities in experience, knowledge, reputation, ability to perform, and customer relationships. The easiest place to start is the company’s website, as well as its online presence and customer reviews. Although online information isn’t always 100% reliable, companies with a stronger online presence and experience reviews are less likely to be scams than those you can’t find any information about. A business that provides up-to-date information and company news on its website, as well as consistently demonstrating positive reviews, is a good sign.

Once you’ve done your research online and are ready to speak directly with someone from the company, it’s important to ask specific questions regarding your acquisition. Ask how familiar the company is with the industry and the equipment you need, and discuss their experience and knowledge in the leasing business. You should also find out what kind of support your reps provide, what your payment options are, and if there is room for negotiation. It’s also important to know what the company’s policy is if something breaks and what kind of lease-to-purchase options and/or tax benefits are offered, if any. Finally, you should ask what information the equipment leasing company needs from you and an estimated time of completion. Once you’ve done all your research and asked all the questions you need to, you can always request and check the equipment leasing company’s customer, supplier, bank, and trade references. If you still have any questions in mind, you can contact each reference and verify the information that the company gives you.

All of this may seem like a lot of effort, but it’s worth the extra time to choose the best equipment leasing company for your needs. By taking the time to do your research, you eliminate the risk of being scammed and greatly reduce the time wasted with unqualified companies. A little effort at the beginning saves a lot of time and work in the end.