How To Choose Your Equipment Leasing Company

Leasing equipment can be a great solution when you need something for a limited, short term, but it can also be a resource for accessing the equipment you need full-time without the large down payment traditional loans require. Depending on your needs and the leasing deal, you may even have an option to turn it into an asset you own down the road if you like. By avoiding an investment in a depreciating asset, you have the opportunity to reach a return on your investment in the lease faster than a purchase would have done, and since leasing requires less up front money, you can also expand your volume of business with the right leasing strategy at the right time.

Getting the most out of your equipment leasing arrangement means finding the company who understands your needs and commits real resources to ensuring they are met. If you’re careful as you discuss your options with a new prospective lender, you can ask just a few revealing questions that will tell you everything you need to know about whether you’ve found the right fit.

How Familiar Is Your Company With My Machine?

Adapt this question to reflect the equipment you’re actually looking to buy, but definitely ask it before you sign any agreements. Even if the deal looks great on paper, the leasing company might not be a great fit for you if they’ve never really worked with machines like yours. You’ll depend on them when it comes time to upgrade and when you need repairs, so you want to choose someone who has expertise with the equipment you want if you’re going to navigate those times easily.

What Happens When Something Breaks?

Many leasing programs make provisions for repair and upkeep in their standard agreements. Even when it isn’t standard, getting assistance with repairs and regular maintenance tune-ups is often an negotiable term, with many companies pledging to assist with the costs up to a certain percentage of the lease’s overall value. Even if you’re expected to handle repairs yourself, it’s not a bad thing if you know up front and plan for the eventuality. After all, a lot of businesses have their own maintenance departments, with techs that have a wide range of experience. You should expect a lease that leaves you paying for all the repair costs to be considerably less expensive than an equipment leasing deal that takes care of them, though.