Maintain your old Siemens Hipath system

How To Choose An Equipment Leasing Company

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 face the challenge of finding attractive financing to acquire business equipment. Many of these companies approach the lease sourcing process seeking the 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 obtaining the best lease transaction or leasing experience.

To obtain attractive lease proposals and to avoid lease blunders, make sure you choose the right leasing companies to bid. Ultimately, the wrong lessor choice can result in a slow approval, inability of the lessor to deliver, hidden fees, substandard lease terms, or worst. To secure the 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 understand the specialization of the lessors bidding on your lease transaction. To get the most attractive deal and to avoid the run-around, stick with lessors who focus on the 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 match the resources of their larger brethren, they often have highly skilled professionals, sufficient resources and more flexibility to meet lessee needs. The goal is to obtain the best leasing arrangement for your firm. By establishing priorities for the 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 in the 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, the appropriate lease type, lease term, lease flexibility, lease facility size, and whether your equipment will be accepted for lease. Use criteria like these and the 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 offer the 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 of the 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. Describe the type of equipment and the 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 narrow the candidates based on further homework and the 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 in the leasing business. Ask about experience with the type of transaction you are seeking, involvement with similar firms in your industry, and the types of lease products they offer firms like yours. Discuss your equipment needs. Find out whether they will be able to lease most of the equipment you need. Ask whether they will finance your lease using internal funding or whether they will broker the lease to another funding source.

Get enough information from and about bidding lessors to decide whether to include them in the bid process. If possible, ask for financial information from potential bidders to evaluate their financial condition. Also, if you can, obtain a Dunn and Bradstreet report ("D&B") for each bidder. In the D&B report, look for lawsuits filed against the lessor, judgments, severe payment delinquencies, poor financial performance and similar issues that might impact performance on a new lease transaction.

Ask for and check customer, vendor, bank and trade references for each lessor. Contact each reference and verify key information given to you by the lessor. Ask how the lessor handles its account and whether there have ever been any problems or issues. Ask customer references about the lessor's ability to perform and about attentiveness to customer problems and concerns.

Investigate bidders online. Check Google (www.google.com) to see whether prospective bidders appear in any newsworthy articles. Hit the message boards and newsgroups. Look for unresolved problems, fraud, financial problems, success stories, and awards. Visit bidders' websites to get as much information as possible before extending an invitation to bid. You may be able to screen out undesirables.

Lastly, make sure prospective bidders belong to one or more industry trade association. While membership alone does not speak for the integrity or expertise of members, most of the associations set standards of conduct for their members.

A Word About Lease Brokers

Lease brokers serve roles similar to insurance brokers. They profit by placing lease transactions with the ultimate financing sources for those transactions. You should decide whether a lease broker would serve you better than seeking direct bids from lessors. Lease brokers can be useful in finding sources for difficult transactions, due to weak credit or unattractive equipment. They also can be useful in placing transactions that are highly specialized. Only work with lease brokers who have high integrity, who have a good understanding of leasing, and who understand the market you are in.

The entry bar for becoming a lease broker is relatively low and not all brokers are well trained or reputable. Check the broker's references and capabilities thoroughly. Check to see whether the broker belongs to the national trade association for lease brokers, NAELB (www.naelb.org) or to one of the other major equipment leasing associations. Use the same guidelines for evaluating brokers as outlined above for leasing companies.

Parting Words Of Caution

Avoid high-pressure lease sellers. Whether they are brokers or leasing company representatives, the odds of you being misled or disappointed with the outcome are very high. Only work with lease representatives or brokers who have a good understanding of leasing and who are sensitive to your needs. To do otherwise might result in delays or disappointment.

Avoid giving lease deposits or advance rentals to brokers. Brokers do not provide the financing directly and, in possession of your money, represent a potential credit risk.

If the lease broker or leasing representative says anything that constitutes a significant misrepresentation, walk away. Chances are the first such misrepresentation won't be the last. There are too many knowledgeable leasing professionals with high integrity. Avoid spending time with those who are unprofessional.

Lastly, make sure you get at least three or four lease bids from qualified lessors, if you can. At the end of the day, lease pricing is market driven. Getting several bids will help ensure that you get competitive pricing and terms.

Choosing the right leasing company is worth the effort. By taking a few easy steps during the planning and bidding phases of the lease procurement process, you can eliminate or greatly reduce time wasted with unqualified lessors. You can also avoid getting the run-around. Allow enough time to carefully check out all bidders. Be partial to lessors with high integrity, great reputations for performance, good expertise and who communicate well with you. You will invest a little time upfront, but you will thank yourself later.

George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. ("LTI"). He is responsible for overseeing the company's marketing and financing efforts. One of the co-founders of LTI, Mr. Parker has been involved in secured lending and equipment financing for over twenty years. Mr. Parker is an industry leader, frequent panelist and author of several articles pertaining to equipment financing.

Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in direct equipment financing and vendor leasing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: http://www.ltileasing.com

In The News:

Suspect arrested over deadly mass shooting at Fourth of July parade
Tue, 05 Jul 2022 00:43:00 +0100
The man suspected of killing at least six people and seriously injuring more than 30 at a Fourth of July parade in Chicago has been arrested, police have said.

The new powerful US weapon being used by Ukraine against Russian targets
Tue, 05 Jul 2022 13:25:00 +0100
Increasing number of pictures are appearing on Ukrainian social media showing a US-made rocket launcher being used against Russian targets.

Hit, hit, hit, destroy: Russia's terrifying tactics set to ensure control of the Donbas
Mon, 04 Jul 2022 19:04:00 +0100
Russian troops are ratcheting up their efforts to secure full control of the entire Donbas area in eastern Ukraine - and from what we have witnessed, there's very little which is going to stop them right now.

Tennis star Nick Kyrgios charged with common assault
Tue, 05 Jul 2022 12:01:00 +0100
Tennis star Nick Kyrgios has been charged with assaulting his former girlfriend, media in Australia has reported.

Dozens rescued as 50,000 people face evacuation amid severe floods in Australia
Tue, 05 Jul 2022 11:18:00 +0100
Dozens of people have been rescued overnight in the Sydney area, with about 50,000 residents facing evacuation amid severe flooding in Australia.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Leases And Tenants - The Spooky Tenant

You, Mr. Landlord are pleased to find qualified tenants for... Read More

Increase Your Business Growth and Cash Flow Through Equipment Leasing

"If it can be manufactured, it can be leased." For... Read More

Venture Leasing - A Smarter Way To Build Enterprise Value

In 2003, venture capitalists and investors dispensed over $18 billion... Read More

Basic Things You Should Know About A Lease Purchase Contract

What exactly is a contract?By definition, a contract is an... Read More

Getting Your Venture Lease Approved

Each year venture capitalists fund more than 2,500 start-up companies... Read More

Using Equipment Leasing as a Competitive Weapon

Most great generals know how to design winning battle plans.... Read More

Smart Car Leasing for Beginners

Car leasing is extremely popular because it provides an attractive... Read More

True Tenant Tales, Volume One

Working with tenants can be an amazing experience. (Owners and... Read More

Dodging Leasings Grim Reaper: Navigating a Payment Default

In her third Harry Potter novel, ?The Prisoner of Azkaban?,... Read More

Ten Ways Start-ups Use Venture Leases And Loans To Generate Millions

The rise of venture leasing and lending has created an... Read More

With a Lease, The Devil Is In The Details

In the last article we looked at a few of... Read More

Landlord Tips And Tricks

Every real estate investor dealing in rental homes has done... Read More

How To Choose An Equipment Leasing Company

Leasing has become a preferred form of equipment financing, accounting... Read More

What Happens When the Anchor Tenant Moves and You Are On a Ten-year Lease?

Recently there was an article in the Houston Business Journal... Read More

Venture Leasing: Startup Financing On the Rise

According to Pricewaterhouse Coopers, investment by institutional venture capitalists in... Read More

Interim Rent: Equipment Leasing?s Trap Door

Many lessees enter into lease transactions that they believe are... Read More

Equipment Leasing Blunders That Can Cost Your Firm a Mint

Rod McHenry, the financial vice president of a document imaging... Read More

The Leverage of the Lease

In today's rapidly changing business environment it makes sense to... Read More

Ten Ways to Save a Bundle on Your Next Lease

According to the Equipment Leasing Association ("ELA"), U.S. businesses lease... Read More

Pricing Your Apartments

How do you fix a price point for an apartment?... Read More

Insiders Guide to Snaring the Best Lease Deal

Every year, thousands of business owners and financial managers are... Read More

Lease or Buy? That is Always the Question with Car Financing

Leasing is a perfectly viable and legitimate way to finance... Read More

Terms to Know Before Leasing A Vehicle - Leasing Jargon Simplified

So, you've decided that you want to lease that next... Read More

The Lease And Purchase Option

If you have an investment property, should you rent it... Read More

How Venture Leasing Added Millions To A Startups Equity Value

Craig Berman beamed noticeably after completing his board presentation. Berman,... Read More