If you’re looking for equipment leasing for assets you’re trying to acquire or refinance, there are some important things you need to know before you begin. Just follow these five tips for equipment leasing success
1. An important factor before you start to apply for equipment leasing is making sure that you thoroughly understand your application profile that leasing companies will be looking at. The reason why this is important is because not focusing on relevant lenders that fit your application profile from the start may doom your overall equipment leasing efforts. If you don’t have an up to date understanding of your application profile to focus your equipment financing search, then you run the risk of automatic declines, damage to your credit report, sub optimal lease rates and terms, or even worse, no funding offers at all.
2. Another important consideration for securing equipment leasing is to work with a highly experienced financing specialist or equipment leasing broker. It’s critical to seek out the services of these professionals for two reasons. First, many leasing companies exclusively work through brokers, so you will not have full access to the total market without broker assistance. Second, a good broker knows how to not only package your application information for best results, but also knows how to manage the leasing companies bureaucracy that can get in the way of both approvals being issued and funding getting in place. If you make sure that you’re working with a knowledgeable professional, then you’ll have greatly increased your chances of success.
3. If You don’t have a recent copy of your personal credit report and business credit report, then you should go on line the major credit reporting agencies and access your credit history and score for a small fee. Alternatively, you can get your personal credit report for free from each of the credit reporting bureaus, but this will not include your credit score and it can take several weeks to receive the information in the mail.
The first thing a lender will review on your equipment leasing application is your credit report. Therefore,its important that you understand what it says so you can focus on either A, B, or C lenders, depending on your credit, and also to be able to proactively explain any mistakes or negatives that appear in your credit report.
4. Instead of complicating your equipment leasing efforts by sending in incomplete or hard to read application forms, try completing a rough copy of the application, making sure that you clarify anything you’re not clear on. Then, once you feel confident that the information is both accurate and complete, get someone with better handwriting to rewrite the application on a blank form. In fact, simplying providing complete and easy to read information, can actually increase your probability of success.
5. If you have only average credit, consider adding an additional consignee to your application form to strengthen your equipment financing profile. It’s not as difficult as you might think and may be as simple as getting your spouse or a business partner to also sign the application. What you need to do is make sure their credit is above average and include them on the application. If your credit is poor or really bad, you may want to keep yourself off the application all together.
So if you really want to secure equipment leasing, follow these tips to get the process working for you, saving time and potentially a considerable amount of money through locating and securing the most relevant equipment leasing for your business scenario.