5 Questions for Small Businesses Seeking Equipment

equipmentAre you a small business?
Are you looking to lease and finance equipment to help your business operate and grow?
Here are 5 questions to ask yourself so you can get started leasing or financing equipment to your strategic advantage:

How will you be using the equipment and how long will your company need it?

Perform a simple cost/benefit analysis by comparing the anticipated costs to the revenue you expect to generate from using the equipment.

Does your equipment finance partner understand your business?

It is beneficial to work with an equipment leasing and finance company that understands your particular market. It is also important for the company to understand your business’s tax and cash flow requirements and be able to set the residual rates. Your equipment financier can also serve as a valued consultant.

Have you calculated your total payments and costs?

Review the number of payments you will owe, the total monthly payment due and any additional costs related to insurance, taxes and other charges. Also, find out if there are costs associated with the lease or finance transaction that may occur during the course of the agreement term, including late payment fees and other surcharges.

Do you understand the terms of your agreement?

Review the provisions of the agreement with your equipment finance company representative. Make sure you understand your company’s liability and consider questions such as:

  • Who will assume the costs for the equipment’s insurance, taxes and maintenance?
  • Who is responsible for installation and maintenance cost?
  • Can you upgrade or add equipment under this agreement?
  • What are your options at the end of the lease agreement?
  • What procedures must you follow if you choose to return the equipment?
  • Are there any extra costs at the end of the agreement?

Close the deal.

Once you have answered key questions and determined that equipment leasing or finance can benefit your company, start enjoying the benefits