Businesses of all sizes often require outside financing to be able to afford the equipment they need. Startups in particular find it difficult to qualify for traditional loans from large financial institutions. One solution to this dilemma is equipment leasing. Here is some information about this form of financing so you can see if it might be a good fit for your company.
The Advantages of Equipment Leasing
The funding of the acquisition of necessary equipment through equipment leasing is available to small businesses that are just starting up as well as large corporations. Approval for leasing is much faster than for traditional loans, which is desirable for companies that need the equipment right away. There is no down payment, and leasing companies typically are flexible with payment terms so that they suit your company’s financial situation. Reasonable costs keep your cash flow steady so you can afford to keep up with salaries for new employees, the purchase of supplies, marketing, and other needs.
Most equipment leasing companies accept applications from businesses regardless of their credit history, including startups with no credit history at all. They may request that you submit a document explaining your credit history if your credit is not good. Other documents you may need include an equipment lease proposal, the previous year’s tax returns, and financial statements from your company. In your proposal, describe what type of business you have, the specific equipment you need, and why you want to lease it.
How to Expedite Approval
Instead of making numerous applications to equipment leasing companies, conduct research to find out which company would be best for your business and focus your efforts. Once you locate the company that seems to match the needs of your business, prepare your paperwork so it is ready in advance of your application.
For more advice on equipment leasing for startups, get in touch with Star Capital USA.