How To Choose An Equipment Leasing Company

Written by George A. Parker


Leasing has become a preferred form of equipment financing, accounting for more than 30% of business equipment acquisitions. Each year, thousands of U.S. companies facerepparttar challenge of finding attractive financing to acquire business equipment. Many of these companies approachrepparttar 112011 lease sourcing process seekingrepparttar 112012 lowest lease rate. While securing a low rate is a worthwhile goal in choosing a leasing arrangement, it alone is usually not a reliable standard for obtainingrepparttar 112013 best lease transaction or leasing experience.

To obtain attractive lease proposals and to avoid lease blunders, make sure you chooserepparttar 112014 right leasing companies to bid. Ultimately,repparttar 112015 wrong lessor choice can result in a slow approval, inability ofrepparttar 112016 lessor to deliver, hidden fees, substandard lease terms, or worst. To securerepparttar 112017 best lease arrangement, you must do your homework in pre-qualifying bidding leasing companies. Give this aspect of obtaining an attractive lease arrangement your highest priority.

How Leasing Companies Differ

Leasing companies can vary in a number of ways. Some specialize in specific industries, some in lease types, some in certain equipment types, and still others in transaction sizes. For example, some leasing companies specialize only in a single industry like health care, printing, agriculture, or transportation. Others focus exclusively on a lease type. They may only offer operating leases for equipment with attractive residual values. Some lessors specialize in full-payout finance leases. Still others focus on small ticket transactions with equipment cost under $ 100,000. It is important to understandrepparttar 112018 specialization ofrepparttar 112019 lessors bidding on your lease transaction. To getrepparttar 112020 most attractive deal and to avoidrepparttar 112021 run-around, stick with lessors who focus onrepparttar 112022 type of transaction you are seeking.

Leasing companies also differ in resources and capabilities. Many large leasing companies are owned by banks, financial companies, or other large industrial concerns. These firms usually have abundant resources and expertise in a number of leasing segments. Mid-size and smaller leasing companies greatly outnumber large lessors. While these companies cannot matchrepparttar 112023 resources of their larger brethren, they often have highly skilled professionals, sufficient resources and more flexibility to meet lessee needs. The goal is to obtainrepparttar 112024 best leasing arrangement for your firm. By establishing priorities forrepparttar 112025 leasing arrangement you are seeking, you will be able to determine whether a leasing firm with sizeable resources or one that is nimble and flexible is a better choice.

When And Where To Look

The time to start your search for a leasing company is early inrepparttar 112026 lease-planning phase, once you have established criteria for a leasing arrangement. Some criteria to consider for a leasing arrangement are: pricing, monthly cash outlay, financial statement impact,repparttar 112027 appropriate lease type, lease term, lease flexibility, lease facility size, and whether your equipment will be accepted for lease. Use criteria like these andrepparttar 112028 qualities you are seeking in a leasing company to start your lessor search. A great starting point for finding bidding leasing companies is through professional and personal referrals. Check with your attorney, your accountant, bank contacts and colleagues in your industry. Also ask friends and acquaintances who use leasing in their businesses. Asked them for contacts at leasing companies that specialize in your industry or that offerrepparttar 112029 type of lease you are seeking. Call your industry association and ask whether they have names of leasing companies serving others in your industry.

Another approach is to call a couple ofrepparttar 112030 major equipment leasing trade associations. Major association websites include: www.elaonline.com, www.eael.org, www.uael.org, www.naelb.org, www.aglf.org, www.mael.org, and www.nvla.org. Describerepparttar 112031 type of equipment andrepparttar 112032 industry you are in. Ask whether they are in a position to provide you with a list of members to contact regarding your lease. If you receive such a list, you may need to narrowrepparttar 112033 candidates based on further homework andrepparttar 112034 criteria you have established.

Evaluating Leasing Companies

Qualities to look for in any leasing company you consider include: 1) experience and expertise; 2) reputation; 3) ability to perform; and 4) a relationship approach.

Interview prospective bidders carefully. Discuss their expertise and experience inrepparttar 112035 leasing business. Ask about experience withrepparttar 112036 type of transaction you are seeking, involvement with similar firms in your industry, andrepparttar 112037 types of lease products they offer firms like yours. Discuss your equipment needs. Find out whether they will be able to lease most ofrepparttar 112038 equipment you need. Ask whether they will finance your lease using internal funding or whether they will brokerrepparttar 112039 lease to another funding source.

Turbocharged Financial Planning

Written by C.C. Collins


Financial planning is an ongoing process individuals and businesses should implement by organizing all aspects of their finances. This will assist in identifying financial goals, providing a comprehensive written Financial Plan, and implementingrepparttar plan in accordance withrepparttar 112010 objectives that are most important to you.

Comprehensive financial planning should involve these areas and these specific questions.

ESTATE PLANNING

*How can you accumulate a sizable estate to pass on as a family legacy? *How will your hard-earned assets be distributed after your death? *How can you minimize federal estate taxes and state inheritance taxes? *How can you best provide for your surviving spouse and children? *Whom do you want to carry out your wishes?

RETIREMENT PLANNING

*How can you accumulate enough in retirement savings and pension benefits to enjoy a comfortable retirement free of financial worry and not be a burden to your family? *How much (or little) can you expect to receive from Social Security? *How can you coordinate your IRA, 401k, pension, Social Security, and other retirement benefits for maximum effectiveness? *At what age can you really afford to retire, especially if you have children to send to college?

TAX PLANNING

*Are you taking full advantage ofrepparttar 112011 tax laws so that you are not paying more than necessary? *Are there changes you could make in your business structure that would reduce your income taxes? *Do you have access to changes in tax law that affect you?

RISK MANAGEMENT

*How are you protected againstrepparttar 112012 unpleasant and potentially catastrophic losses associated with natural disasters, illness or accident, disability, property loss, personal liability, and premature death? *Is your business protected against these potential losses? *How would your business be affected if your key people were no longer able to function?

INVESTMENT STRATEGY

*Do you really have a structured investment strategy or do you just invest haphazardly inrepparttar 112013 latest investment fad? *Do you know how to increase your investment returns and lower your investment risk throughrepparttar 112014 use ofrepparttar 112015 principles ofrepparttar 112016 Modern Portfolio Theory of Asset Allocation? *Is your asset mix appropriate for your short-term needs as well as your long-term goals? *Do you adjust your investment strategy as your investment objectives change? *Are your investments effectively overcomingrepparttar 112017 ravages of inflation and taxation? *Do your investments accurately reflect your risk/reward profile?

Cont'd on page 2 ==>
 
ImproveHomeLife.com © 2005
Terms of Use