So, why should you join these businesses in choosing to lease? Well, one key factor is that commencement of a lease can be done with very little out of pocket expense. Two advanced payments or an equal security deposit is usually all that's required. Couple this with fact that for many leases, particularly those under $75,000, a simple one page credit application is all that is needed to be considered for approval. Compare this against an equipment loan, with it's more extensive paperwork and resulting 10 to 50 percent down payment required to begin transaction.

Leasing will also allow your business to maintain credit lines with banks. This preserves company's borrowing power for future expansion, investing, or other types of growth where leases cannot satisfy need.

Many business owners don't like idea of paying a premium rate in order to both own and use equipment. If obsolescence is an issue, such as in hi-tech sector, most companies find it more desirable to be able to walk away from outdated equipment having completed a short term lease. The average term runs anywhere from 2 to 5 years, after which business can begin another lease and acquire more, up-to-date equipment. This progression can give your company a vital edge over it's competitors. Other leasing benefits could be expounded upon, such as tax advantages, lower monthly payments, fixed expenses and off-setting of inflation, but you can see point.

Now, simply realizing that leasing is beneficial for your business and then pursuing it as a course of action is only start. Like bank loans, there are elements of a lease request that increase chances of funding. That may seem like a no-brainer, but many business owners expect more leniency from lessors than any lending institution is able to provide. Leasing companies, like your business, are in process to make money. Therefore, some consideration on your part is in order. You should try to give lessor at least a 70 percent chance of funding your request. Below are most crucial points of review:

The most well known example of passive networking is your local chamber of commerce. You can find a chamber of commerce chapter in almost every major city worldwide. Your local chamber of commerce gives you opportunity to meet with many of movers and shakers in your local business community. Through many events they plan on a monthly and yearly basis, they offer you a chance to connect with a number of potential prospects for your products and services.