Credit History of Guarantor(s) - Lessors will make decisions based on a lessee's credit history after reviewing their consumer and/or business credit report. The leasing company looks for numerous late or delinquent credit commitments, lawsuits or judgments, bankruptcy, unverified residence, short credit history, and debt larger than what is stated on application. Keep in mind, however, that some of above problems can still be overcome during approval process.

Bank Relationship - Your business should have a checking account that has been established for at least two years and has had an adequate average daily balance for that period of time. If there have been any NSF's, they must not be recent.

Trade Relationships - It's a strong indicator that your business has good cash flow if discounts are offered (e.g., 2% 10 days: net 30 days). The leasing company looks for trade accounts that are paid on time and within terms of agreement.

Financial Statements - Generally, if lease amount is more than $50,000 to $75,000, a full financial package is mandatory. This includes, but is not necessarily limited to, last two year end financial statements, with a complete balance sheet and profit and loss statement. An interim statement for current and last year's comparative period is often required as well if year-end financials are over six months old.

Other considerations include: type and cost comparisons of equipment (collateral), extent of lessee's trade credit and bank borrowing lines, and leasing history of business.

Though it isn't crucial to have every one of afore mentioned points strong, an above average ranking in majority of them greatly increases probability of funding. It also increases your likelihood of receiving a better rate. If your business demonstrates strength in only one or two of these areas, it is still possible to secure financing, though choice of lessors becomes a bit more limited and elevated risk is reflected by a higher lease rate.

It's always in a company's best interest for decision-makers to consider leasing as a means of capital conservation. And as you can see, it's also important to prepare for transaction should decision be made to pursue it. Once you do obtain your lease, chances are you will never go back solely to your old way of equipment financing. The majority of businesses that utilize equipment leasing each year in United States and Canada continue to do so with at least some of their equipment thereafter. Contacting a leasing company representative or a broker can help you determine if leasing can create an environment of improved cash flow and an opportunity for growth in your business.

So what are advantages and disadvantages of each kind of networking? They both have their place but strong networking groups represent a bigger commitment than passive networking groups. By belonging to a strong networking group, you are committed to be on lookout for referrals for group members. Strong networking groups also usually meet on a weekly basis whereas passive networking groups usually meet monthly.

Passive networks can have multiple people from one profession or industry as members. They also have no requirements for passing on referrals to other members. Referrals do occur in a passive networking event but it is not facilitated by meeting and is totally up to business owner to initiate. You can belong to multiple passive networking groups. Any business you get from passive networking will most likely be a result of amount of effort you put in.

Strong networks on other hand restrict membership to only one person per industry or profession. This greatly increases likelihood that you will receive referrals from participating members. Meetings are structured in a way to encourage referrals and there is a formal referral exchange that happens every week. It is strongly recommended that you only belong to one strong networking group in order to keep quality of your referrals high.

In either case, it is important for members of these groups to see you as professional and competent. Referrals will go to people referrer knows, likes and trusts.

Want more business? Start attending business to business networking events in your area.