Business owners know how important it is to find the ideal balance between quality and value. This is especially important when it comes to outfitting the office with furniture and technological devices. Many business owners find that equipment leasing is a wise alternative to purchasing, as it is a smaller financial commitment and allows the option of upgrading equipment when desired. If you’ve decided to lease office equipment, here are some tips on how to choose the best leasing company.
Types of Lessors
While leasing is generally less expensive than buying, it’s still a significant financial investment. It’s important to understand the different types of equipment leasing companies so you can choose the one that will work best for your business. There are three main types of finance providers for leasing office equipment: a broker, a leasing company, and an independent lessor.
A lease broker serves as a liaison between you (the lessee) and any potential lessors. A broker handles most of the paperwork and negotiations between you and the lessors, and you pay the broker a fee equal to some percentage of the final cost of the equipment rental.
A leasing company is usually tied to the equipment manufacturer or dealer. Because of this specific relationship between the leasing company and the manufacturer, you would only go through a leasing company if you’ve decided to use equipment from a specific manufacturer or dealer.
All other lease providers fall under the category of independent lessor. Banks, or other financial institutions that provide equipment leases, are common examples of independent lessors. These organizations work by re-marketing office equipment for use in a lease, which means they offer products from a wide range of manufacturers. Once you’ve determined which type of lessor is the best fit for your situation, you can then choose the specific one you want.
Choosing the Right One
Entering into an arrangement with a lessor can have long-term ramifications, so it’s vital to choose a reliable equipment leasing company. Research your prospective lessor to determine its dependability, experience in your industry, and previous customer reviews. Choose a company with a solid financial situation and no areas of concern, such as litigation. You can also ask a potential lessor about the details of working together, such as the payment process, down payment required, potential tax incentives, or flexible financing options.
Understanding the types of lessors and their answers to your questions can help you compare the options for lease providers and choose the one you prefer. You can then begin your lease and outfit your office with furniture and technology for a price that works with your budget.