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 you’ll 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 you’ve gathered, do further investigation by checking out the lease programs that each company provides. Check the requirements of application. Furthermore, check the lease company’s 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.

After conducting research, pick your top three leasing companies that you think have the best potential to be your lease partner. Aside from comparing the lease programs and the costs, don’t forget to consider the reputation and track record of each company as well.

When you’re done collecting all important information about each of your top three prospective lessors, you may request for a price quote from these three firms. Never submit multiple applications to more than three leasing firms as too make your application look suspicious. A certain leasing company may think that you are not getting approved with your other lease applications because of a problem in your profile. In fact, a potential lessor may decline your application if you have more than three inquiries from different lease companies in your credit report.

Last but not least, check from the NAELB’s website (National Trade Association for Lease Brokers) (www.naelb.org) if you are dealing with a credible business equipment lease broker.