IS THERE A MINIMUM AMOUNT THAT I NEED TO FINANCE?
The short answer is no. The longer answer is more complicated, but in the end this is largely a budget issue. Most leasing companies have a niche with which they are comfortable. Small ticket for leasing companies is any equipment purchase up to $100,000. Medium ticket is up to $5,000,000 and large ticket is greater than that. Leasing companies typically will specialize in one of these three categories. Major finance companies would have divisions for each of these categories and may in fact have further breakdowns for the different types of equipment. Fortunately the benefits of using a service like ours is that regardless of the amount you need to finance, we have a partner who specializes in transactions of the appropriate size.

WHAT FINANCIAL INFORMATION IS REQUIRED?
Leasing company requirements vary with the size of the transaction and the party who will lease the equipment. Most leasing companies will at minimum require the Social Security number of the personal guarantor and/or the company’s Federal Employment Identification Number (FEIN). For equipment leases under $100,000, an individual FICO score of 650 is likely to be required. Physicians and Dentists will be required to show evidence of their professional capacity. For lease transactions in excess of $100,000 customers will be required to show 2 or 3 years financial statements. Most leasing companies require a minimum of 3 years of operation. Personal guarantees by the principals and in some instances, the spouse, are not uncommon. Audited financial statements may also be required.

WHAT TYPE OF LEASE IS RIGHT FOR ME?
If you are sold on leasing, the Equipment Leasing Association offers some tips to help you identify which lease is best for your company.

Determine:

How long you want to use the equipment

Your tax situation

Your cash flow

Your company’s specific needs as they relate to future growth

Leasing can play a pivotal role in helping you realize your short and long range goals. Complete the form to the right and we will connect you with a leasing professional who will provide you with a no obligation consultation where you can discuss which type of lease is right for you.

WHAT ARE THE BENEFITS OF AN INDEPENDANT LEASING COMPANY vs. VENDOR FINANCING OPTIONS?
Vendor leasing companies represent the manufacturer of the leased equipment. Generally, they can offer lower lease rentals than could (but not necessarily) a third party leasing company. That they are the manufacturer gives them a high degree of control should there be a need to change out or upgrade to the equipment during the term of the lease. A disadvantage to doing business with a vendor leasing company is that changes made during the lease term could be more costly and no viable alternative would be available other than the original manufacturer’s equipment.

Independent leasing companies offer a full breadth of leasing options that could more aptly meet the lessee’s objectives. One of those options (and major benefits) would be unrestricted access to a competitive vendor marketplace.