How to Save on Your Next Equipment Lease

The Equipment Leasing Association reports that companies in the United States are investing about $ 200 billion in equipment, from large vehicles, such as commercial aircraft, to small devices, such as laptops and computers.

Regardless of whether you are applying for financing equipment rental for the first time or planning to renew your rental, here are some important tips on how you can spend less on your next rental:

  1. Partner with the relevant leasing company

Start with a partnership with a proven leasing company. Incorrect selection may lead to unexpected delays in the processing of your application; The need to pay higher fees; bad rental package; late delivery of leased equipment; and other topics.

It is very important to find time to search for a computer leasing company. Look for one that has been in the industry for a considerable time; It is known for offering excellent service; and one that offers services, in particular, for the exact type and size of your business.

  1. Evaluate the deal

Equipment leasing offers imply different conditions. You can save your budget by choosing the offer that best suits your business requirements.

Equipment leasing offers

For example, are prices reasonable? Do you have the opportunity to choose a maturity that matches your financial capabilities? What are the conditions for obsolescence, equipment use, replacement, return and expiration of the lease term?

  1. Know your credit situation

For business owners who have been in business for at least a year, be prepared to present a good commercial credit history. A decent business loan will surely give you the advantage of quickly getting approval and making a better deal.

What are the opportunities for those who have an unfavorable credit history? There are equipment leasing companies that provide equipment financing for clients with credit problems. Before you apply for a rental, make sure that the landlord provides rental services to people with bad credit. Applying for a lease with the wrong landlord can mean a refusal and can only cause more damage to your credit rating.

  1. Go with a short rental period

A shorter rental period will give you more freedom to make future decisions. Will you return the equipment or extend the contract? If you are not satisfied with the services of your current leasing company, you can switch to a new leasing provider without having to pay fines for violating the lease agreement. On the other hand, if you want to stay with the same landlord, you can simply notify the rental agreement in advance and revise the agreement.

  1. Reduce intermediate income

Intermediate leases are expenses incurred from the day the leased equipment was delivered to your company’s location until the day when the lease period officially begins. Even a couple of days can add to your account. One way to avoid additional costs is to order the equipment before the end of the month, since most of the rental conditions begin on the first day of the month. You can ask your rental company to set a limit on the temporary rent (from 10 to 15 days), regardless of the date of receipt of the equipment.