There are alternatives for your small business when the bank says no. You can work with a lease broker who can find alternative funding sources for your equipment.
Do not give up the hope of getting that new equipment your business so desperately needs. By contacting a lease broker you could actually come out ahead in the long run instead of tying up the extra capital that the bank wants in order to finance your needed equipment purchase. If you have had credit issues in the past, your bank may not even want to risk lending to you at this moment, but that doesn't mean you need to put your business expansion on hold. You could lease your equipment with very little down, instead of the 20 percent or more that your bank wants you to invest.
Here are some of the benefits of Equipment Leasing: - Equipment leasing improves your company's cash flow. With leasing, there is no need for significant cash outlays, as opposed to equipment purchase, which generally requires a large down payment.
- Equipment leasing does not have any impact on your individual credit lines.
- Profits and growth are improved through equipment leasing. Businesses choose not to invest in equipment that becomes obsolete and will improve your balance sheet.
- Equipment leasing reduces long term debt.
- Equipment lease payments are operating expenses and are 100 percent tax deductible in most businesses.
Creative financing is available through using equipment leasing, because lower payments can be arranged during the early months of the lease. You need to seek out a lease broker who was structured to handle small to mid-sized leases, which make up the major portion of a $270 billion industry. An estimated 8 out of 10 businesses lease their equipment to improve cash flow.
The leasing broker’s niche is the small to mid-sized business, looking for leases of $100,000 and less. The smaller market has consistently been under serviced by leasing companies. Their commitment to the small and mid-sized lease customer is reinforced by the rock-solid belief that nothing less than the best will do in any transaction.
If it is equipment for your business, almost anything can be leased:
Phone Systems, Computers, Office Equipment, Video Equipment, Photographic Equipment, Medical Equipment, Dental Equipment, Chiropractic Equipment, Office Furniture, Restaurant Equipment, Scientific Equipment, Construction Equipment, Manufacturing Equipment, Air Conditioning Equipment, Welding Equipment, Shelving & Display Cases, TV Studio Equipment, Outdoor/Indoor Signs, Dry Cleaning Machinery, Refrigeration Equipment, Fork Lift Trucks, Farm Machinery, Hoists, Cranes, Tow Trucks, Autos, Industrial Equipment, Communications Equipment, Water Purification Equipment, Recycling Equipment, Lighting Equipment, Hotel Equipment, Theater Projection Equipment, Environmental Equipment, Chemical Handling Equipment, Cement Mixers, Woodworking Equipment, Forestry Equipment, Television & Home Theater Equipment, Power Plant Equipment, Saw Mill Equipment, And The List Goes On...
So, if your bank has turned you down, do not fret, you can still get the equipment you need. You might even get much better terms since your deal can be shopped among many lease funding sources that will compete to do business with you and your company. You could be better off in the long run, and thank your bank for telling you no.
|
