A lot of people are under the impression that a new business will not be able to get equipment leasing financing and so they either don’t try or ask around a few places and become convinced it isn’t going to happen so they give up.
It doesn’t have to be that way but you do have to know how to approach the issue.
The first thing to realize is that just because the business is new doesn’t mean the people behind it are new. If you are the owner and you have extensive industry experience in the same industry or your partners do it might be possible to use your references from past work to demonstrate the business is being run by old hands even if the entity is new.
If you don’t have related experience but you personally have good credit you can always sign the lease as an individual to start and the refinance it once the business has established itself and built some credit and history of its own.
A lot also depends on what type of business you are going into and what type of equipment you are trying to lease. The better the equipment holds its value the more easily it will be lease-able to a new business since there is a lower risk of loss in the event of a default.
Don’t underestimate the impression you give either when presenting your business. A business may be new but if it starting out well capitalized, has good reference clients on board and employees and a solid business plan it can still find leasing capital to work with.
On the other hand, if you present yourself as a single individual trying to start something part time out of your garage with only a vague plan of what you are doing and no revenue or clients yet it is going to be much harder to convince anyone you will be able to make the payments.
The bottom line is you need to make a good impression, be aware of the value of what you are trying to lease, be willing to sign personally if needed and work with an equipment leasing broker that is flexible and doesn’t just say NO when told you haven’t been in business since the beginning of time.
To learn more about startup equipment leasing or to get a free consultation and an easy to complete no fee application for any type of business equipment leasing for your needs contact EZ Equipment Leasing now.