SGIA Journal Graphic November/December 2016 - 12

service, and can even offer suggestions
on equipment. Equipment leasing companies will also offer flexible financing
options and work with startups, both
unusual qualities that are not often seen
with banks or traditional lenders.
Utilizing a lender with industry
knowledge and a high approval rate helps
to ensure that you get financing quickly.
Lenders without these qualities may not
produce the results you need or operate
in a timely manner. When looking for a
lender, take the time to read reviews, find
testimonials, look at time in business, and
research their Better Business Bureau rating. These factors act as a guidepost for
finding a lender you can trust to get you
financing fast.
2. Understand the Process

Don't be intimidated by the leasing
process. It isn't too difficult to learn,
and knowing how it works and what
to expect means lenders can spend less
time explaining and more time working
on getting your deal approved. In other
words, research the leasing process so you
know what you're getting into and what it
means for your business.
To get you started, here are the main
stages of leasing: application, approval,
documentation and acceptance.
* Application: The first step is fairly
straightforward. In order to get financing, you need to apply. It's best to have
equipment picked out before applying, but pre-approvals are a common
practice in the industry.
* Approval: After submitting your application and all other requested documents, your application is reviewed.
If accepted, your rep will get back to
you with the terms and you move onto
documentation.
* Documentation: In the documentation stage, you need to read, agree to
and sign any documents sent your way
and promptly return them to your
lender. The sooner you do this, the
sooner you get your equipment.
* Acceptance: Last, but certainly not
least, you get your equipment. Once

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November/December 2016

you confirm it has arrived, your lease
officially starts.
3. Honesty is the Best Policy

It's natural to want to portray your business in the most positive light possible,
especially when applying for financing, but a sure-fire way to delay the
equipment financing process is to omit
pertinent information from your chosen lender. If there is a credit issue or a
missed payment, it's better to be forthcoming. One way or another, your potential financing partner will learn about any
credit issues. Being upfront allows lenders
to prepare and alter a deal to give it the
best chance of success.
When it comes to financing, just let
your skeletons out of the closet. If you
know you have troubled credit or need
specialized financing, look for a lender
that caters to those things. By working
with a lender that is flexible, you won't
have a need to hide anything.
4. Ask Away

If you're like most small business owners, you don't have a formal education
in finance, but that's ok! Equipment
leasing companies are happy to help
guide you through the process. A great
way to speed things up is to communicate any questions or concerns as soon
as they arise. Waiting till the last minute
to go through a laundry list of questions slows down the whole process. But
don't let that deter you from asking or
seeking clarification. It's always better to
ask too many questions rather than too
few. No one expects you to be an expert,
especially when it comes to confusing
terminology and long legal disclaimers.
When you talk to a potential lender,
have questions prepared. Not sure what
to ask your leasing consultant? Start
with these:
* Do you often work in my industry?
* What information do I need to provide?
* Can I buy from any vendor? Do you
have any preferred vendors?
* What kind of flexible lease terms are
offered?

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SGIA Journal Graphic November/December 2016

Table of Contents for the Digital Edition of SGIA Journal Graphic November/December 2016