Choosing equipment leasing over purchasing equipment outright can make better financial sense for some businesses, especially startups with limited revenue available. This option also makes it possible to discontinue leasing equipment when it becomes outdated and request to lease the newest version. Many leases also come with repair and maintenance coverage, saving you money and time from having to do the job yourself or research companies to outsource it to.
With the above benefits in mind, it’s important to formulate a list of questions to ask equipment leasing companies before agreeing to a leasing contract. We use our experience with both leasing and financing to list the best questions to ask below.
Can Your Equipment Leasing Company Answer These Questions?
When you lease equipment from a company, you expect its employees to be experts on the piece of equipment you need. The salesperson should provide you with intelligent, helpful answers to every question you have about the equipment as well as direct you to additional resources. Other questions to consider asking a leasing company include:
- What is your company’s policy if the piece of equipment breaks?
- What payment options do you offer?
- Will you consider price negotiations, or do you feel firm about the price you set to lease your equipment?
- Do you offer the option to buy a piece of equipment once the lease expires and I have made timely payments?
- Can you provide me with names and contact information for previous lease customers or other types of references?
- Do you have a legitimate business license, and has your business earned any accreditations?
- What information do you need from me to complete the transaction?
Remember that it’s always a good idea to obtain a Better Business Bureau report for any company you’re considering for a large dollar transaction. Please don’t hesitate to contact Safe Harbor Commercial Capital if we can answer additional questions about equipment leasing.