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Leasing equipment: Find and evaluate a lessor
 As
with just about any industry, the best bet for finding a good equipment
lessor is a personal recommendation from someone you know and trust.
Beyond that, a leasing broker, equipment consultant, or equipment
value-added reseller is your best alternative. These are professionals
who work in the field and have a good idea which companies are reputable.
But be aware of who pays their commissions.
The Internet is an excellent resource for finding
leasing companies, as are the business listings in the telephone
book. Both are good places to start, but a small business owner
will have to do his homework to find out how long companies have
been in business and evaluate their financial stability. Most reputable
companies are registered members of the Equipment
Leasing Association, as well as regional leasing associations.
The more affiliations the company has, the more likely is its commitment
to strong, ethical business practices.
The equipment leasing industry has grown steadily
in the last few years, with new players cropping up all the time.
This bodes well for the small, independent business owner, as increased
competition spawns lower interest rates and wider market appeal
for small-ticket leases. You can shop for equipment leases from
banks and bank subsidiaries, publicly held finance companies, private
finance companies and manufacturing subsidiaries created to finance
leasing of company products.
The Equipment Leasing Association reports that, as
a $180 billion a year industry, equipment leasing represents the
largest external source of capital investment in the U.S. Computer
and telecommunications equipment are the fastest growing segments
of the leasing industry, with computers the most commonly leased
equipment.
"Financing is the fuel of commerce, and one of the
advantages of leasing is its speed and flexibility," says David
Tull, chairman of Crestmark
Bank in Troy, Mich. "Leasing has great appeal due to its alacrity
for making deals, streamlined paperwork, assured decisions and because
it doesn't require long lines at the bank. The time and money saved
in completing a business lease -- as opposed to a bank loan -- serves
to neutralize some of the financing costs of leasing."
Tull hastens to point out that current leasing markets
are suitably competitive and efficient. "Business owners who have
the business prospects and management skills to justify equipment
leasing, regardless of cash flow or debt ratio, generally do not
have to 'overpay' for the privilege of doing so." That's good news
not just for large corporations, but for the little guy as well.
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