Equipment Leasing: Getting A Quick Lease Approval
August 25th, 2010 | 
Author: Are you thinking of leasing equipment for your business, but you are racing against time? Here are some tips to make sure your company’s lease is approved quickly: Guard Standing your company’s credit to establish a pattern of paying invoices and bills on time.
Are you thinking of leasing equipment for your business, but you are racing against time? Here are some tips to make sure your company’s lease is approved quickly:
Standing guard your company’s credit
Establish a pattern of paying invoices and bills on time. Be prepared to discuss the status and reasons for the dispute in detail with the leasing company. Because many leasing transactions requiring personal guarantees from directors, it is important that directors maintain good credit standing.
Prepare a package of lease
Include information in the concession package that the leasing company may require. You must include a background write to discuss your business. Discuss the history of your company, the fund business major and a detailed discussion about what your company does. Also include a discussion of competition and the achievements of your company. Company’s financial statements including tax returns and, if available. Include a list of trade references and credit. Also includes a list of equipment you intend to rent, along with some equipment literature. Finally, this is a summary of the conditions of lease that you are looking for.
Credit Enhancements Identify Ahead of Time
Although you might not need credit enhancements for your lease, it will not hurt to identify them in case they are needed. Possible credit enhancements include: a guarantee of additional equipment, cash equivalent securities, such as CDs, stocks, bonds and cash, other assets such as real estate, contracts revenue, rights of intellectual property, personal guarantees.
Have updated Financial Statements
Although the financial statements may not be necessary for transactions under $ 75,000, they are often needed for larger operations. Whenever possible, these statements should be prepared and audited by a CPA. Most landlords want to see financial, covering at least three years of operation and the most recent financial statements.
Have an updated business plan with projections. Show the anticipated revenues, expenses and profits. Include the lease payments as an expense item under the assumption that the lease is approved. Include key business assumptions used for the plan. Provide a summary of projections, comparing to historical performance.
Get bids from at least three leasing companies
If you want a competitive operating lease, it makes sense to get quotes from several leasing companies leasing of trust. Look to the leasing companies that specialize in the type of operation of accommodation you are looking for. There are landlords who specialize in rental transactions under $ 75.000 for example. Others specialize in certain types of equipment such as automobiles, medical equipment or copiers. Investigate thoroughly every landlord and reputation. Establish a deadline for all bids. Once the proposals are, compare them carefully and look for any terms or conditions that may prove problematic.
Offer to make lease payments using ACH debit
ACH debit is an automatic payment set by your company, the leasing company and the bank of your company. It allows the leasing company to receive the lease payments from the bank account of your company in payment dates specified. This set-up is attractive to leasing companies because it reduces the cost of billing and collection. Also helps alleviate the concerns ACH collection once that automatically creates the payments on time.
Provide credit references
Most landlords want to talk at least three or four suppliers or creditors on the performance of your company for payment and compliance with business rules. If you have done business with the leaser and other creditors, including one or two of these as references. Provide the name and address of each creditor, the contact person and phone number for each contact.
Getting the approval of their leases following should not remind you to see the grass grow. You can greatly accelerate the process by following these simple steps. Be prepared for rapid approval of the lease.
