Tag Archives: lease
Identifying a Good Equipment Lease Business Partner (Page 1 of 2)
Every year, both big and small businesses are faced with the challenge of financing business equipment. Although applying for a loan from a bank or commercial lending companies is an option, getting approved can prove to be a major issue especially for new businesses. Fortunately, there is another option to acquire the needed equipment for business.
Search the market and you will find leasing companies that offer business equipment lease financing. The question is, how can you pick the right one of the many choices? Listed below are essential pointers that entrepreneurs must seriously consider to find a trust-worthy business equipment lease partner.
Not All Equipment Leasing Companies Are the Same
Not all leasing companies offer the same kinds of lease services. For instance, there are lease companies that exclusively cater to businesses in particular industries. Some lease providers offer specialized machines for specific businesses. You may also find lease companies that only offer vehicle leasing. Then there are leasing companies that are like a one-stop shop where you can acquire all types of business lease services.
When it comes to getting approval, the standards will also vary from one lessor to another. There are lease companies that have very strict standards while others may be more lenient in approving lease applications. In fact, you can find certain business lease companies that provide special lease programs for new businesses with no credit history and for businesses with bad credit history.
The amount of available financing will also be different depending on the leasing company. Some lease providers will offer lower financing (under $100,000) than others. If your business requires specialized equipment, these can be more expensive and youll need a higher lease ($100,000 and above) financing.
Prior to submitting your lease application, make sure that your chosen leasing company offer the exact type of financing you need. Does the lessor cater to businesses that belong to your industry? If you are a small business entrepreneur, does your prospective lessor serve to small-scale businesses? Most importantly, is there a lease program that matches your business?
Searching for the Right Business Equipment Lease Partner
In order to find the right business leasing company, a business owner must conduct some research. Try to gather recommendations from your personal and business contacts. For instance, you may ask your business attorney, suppliers, banks or friends in the industry if they know a leasing company that can help your financing needs.
From the list of prospective lease companies youve gathered, do further investigation by checking out the lease programs that each company provides. Check the requirements of application. Furthermore, check the lease companys credit rating requirement.
Doing research will be more convenient by using the internet. You can check out websites of major equipment leasing trade associations in your State and ask for a list of lease companies that offer services to your type of business.
The Advantages Of Purchasing A Home Via Lease To Own (with Low Down Payment And Bad Credit)
Folks have different reasons for avoiding owning homes. Some factor is their less than stellar credit scores into the situation. This gives them limited access to mortgage plans, with only those that are laden with ridiculous interest rates usually available. Others who are able to acquire financing have limited cash flows. This hinders them from coming up with considerable down-payment amounts for home purchases. And there are those who hold satisfactory paying jobs, yet their status as new immigrants immediately crosses them out from home ownership opportunities. Whatever the reasons may be, it is refreshing to know that there is a viable option available if you are one of the folks described above, and that is through lease to own. Unsure how this system will work to your benefit? Then read on to find out.
1.You get access to immediate home ownership opportunities. The lease to buy option, just like its name suggests, first starts out as a lease agreement between you and the house owner. But instead of just renting out the property, you are presented with the chance to buy it after the lease agreement expires. This then translates to instant home ownership, as you are essentially already considered the owner of the home the moment you move in. Hate the tile work in the bathroom? Then by all means have it changed! You can make as many improvements or modifications as you want and not worry about what the landlord will say.
2.Only requires payment of really affordable amounts. With home purchasing, you are required to fork over at least 5% of the propertys worth to cover lender fees, realtor shares, and equity payments. With rent to own however, this is not usually the case. All you need to come up with is the option deposit amount that is usually just twice of what you will usually pay for when closing a home rental deal. Whats best, the option deposit will be deducted from the overall price of the home once you finally decide to avail of your option to buy.
3.Provides you with the chance to opt out of buying. There are a number of reasons that could affect your decision to buy the home. First off, if you think the home will lose its value in the future, then you may decide against buying it. Or perhaps through the span of the lease to own agreement you find out the neighborhood is not really somewhere you would like to raise a family. Probably the neighbors are boisterous, or maybe the area has its considerable share of crimes. Whatever your reservations may be, you have the option to not proceed with the deal to buy. And if you indeed decide to abort the deal, you will lose the option deposit, which is a fairly low investment considering all the home ownership opportunities you have gained access to.
Lastly, deciding to avail of the lease to buy option from a reputable seller has a number of benefits when you look at it from a legal standpoint. Firstly, you will be protected from evictions. Questionable home sellers typically just pocket monthly lease payments and not take care of current dues such as mortgage, real estate tax, or insurance coverage. Through a respectable seller, all these dues will already be included in your monthly payments. This way, you need not have to worry about paying them on time, or worse, get caught unawares with an eviction notice from the lender. Secondly, by dealing with a reputable seller, you are protected from unknown transfers while the rent to own agreement is in full effect. So you need not fear of having to give up the home you have been paying for religiously to someone who happens to hold a legally binding deed of transfer.
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