1. Terms Of Business And Financing Equipment’s
Very leasing firm is equipped with all equipments one new company must have. It is
important to know, all equipment selling companies is not a leasing company. Almost what a
selling company can do for you is directing you towards the leasing company at which they
sell their equipment. Anyhow this referral system is also a business strategy to help both
equipment sellers and leasers to make profit.
It is better to get the quote of the equipments to be leased from the selling company referral
leasers. This quote becomes competitive. The reason behind this is, the company wants to
sell more and the leasing company cannot afford to loose a potential customer referred
directly by the supplier company. Many times this referral program may take you to more
than one referral company to supply you more competitive quotes. Asking the friends and
business associates to guide for the right leasing company is also a right move. Before
proceeding to the financial matters it is needed to confirm that the person you are dealing
with is a broker or direct company executive. Has that been a broker, you must confirm
whether he is directly connected with the company or no to save unwanted expenses.
Anyway there is nothing wrong to work with an agent to get what you want. It is similar to
working with an insurance agent; you just need to know how to deal. The agents possess
more knowledge about the industry and you can encash this knowledge to get the
equipments at competitive prices. The extra cash spent on the brokerage is not a big deal if
you find the right deal in the market. The only thing is buyers should be bewaring while
working with these agents. Equipment leasing and finance association (ELFA) conducted
research on US leasing sector and found that eight out of ten US companies leasing part or
full equipments needed for the operation. In these ten companies nine are willing to lease the
equipments again. In all the possible ways to acquire the equipments, the equipment leasing
companies are the proven bests.
The major customers for this equipment leasing companies are the businesses with small
capital. The process includes the lease of all required business equipment needs from fax
machines to printing presses and from trucks to earth movers. And this process is called as
business equipment leasing. ELFA predicts that leasing will continue to grow with equipment
leasing rates of 6% annually. Leases are not same as loans and the leasing costs are figured
differently than the loan. It can be figured out by comparing monthly lease rates with interest
rates. With a cost-of-capital basis approach, it becomes clear that leasing is the least
expensive option.
After deciding to lease the equipments, select the type of need which suits your needs. While
choosing the right lease for the company it is advised to consult the company accountant and
tax consultant to get the required information. Keeping some points in mind about the lease
will definitely help and those points can be listed as timeframe of the lease, intensions
associated with the leased equipments after the lease period, approximation about present

2. and future tax situations, cash flow associated with the company, specific needs of the
company to support future growth etc. equipment leasing