Technology Equipment Financing: 8 Tips to Know Before Signing

At some point, all business owners need technology equipment to sustain or grow operations. However, equipment costs can add up fast. In many cases, there’s a better alternative to a large technology equipment purchase.

Leasing equipment is a solution for U.S. business owners of all sizes to sustain operations and prosper in a highly competitive marketplace. It enables cash-strapped enterprises that need new technology to sustain operations or capture new business.

With an equipment lease, you can acquire the technology that you need to achieve your goals. The following are eight tips for quickly securing technology equipment financing.

1. Show the Lender Why You Need the Equipment 

When applying for an equipment lease, show the lender how it will add value to your enterprise. For instance, new technology may enable you to better service your customers.

Alternatively, new equipment may empower your team to work faster. Also, your vendor may maintain the equipment, rather than your company absorbing that cost. You need to show that the equipment will, in some way, enable you to improve your operation.

2. Check Your Personal Credit

Before you apply for a lease, clear up any issues with your personal credit. Ideally, you check your credit regularly. If not, now’s the time to do it.

Credit reporting agencies handle massive amounts of information. As a result, things fall through the cracks. When this happens, a mistake can prevent you from securing a lease for vital technology.

A significant number of consumers have one or more mistakes on their credit reports. By making sure your report is accurate, you can increase your credit score as well as your chances of securing a lease with the best possible equipment financing agreement.

3. Research Financing Rates

If you’re considering a lease for technology, shop around. Don’t assume that banks and manufacturers will offer you the best deal.

Institutions and manufacturers rely on the fact that most people will not think of leasing alternatives. As a result, they may charge a steep premium for the service.

Compare rates and lease terms offered by various providers. Also, scrutinize fees and options. This process takes time, but it’s worth it for the savings that you’ll enjoy over time.

4. Check Your Business Credit

Your business credit profile is another major determining factor as to the approval and terms of your lease. You can build your business credit by paying invoices early. A favorable business credit profile will give you access to more options, better terms and lower interest rates.

Also, make sure that all your company information is accurate when you apply. Lenders will likely deny your lease application if it contains inaccurate or inconsistent information.

5. Don’t Request Financing from Multiple Lenders 

Although you should shop around for the best deal, apply to only one lender. Financiers don’t like to see recent denials from other leasing companies.

The first thing a potential lender will wonder is why another financier rejected your application. Alternatively, lenders may worry that you may not have the ability to make payment on leases from multiple providers.

You can narrow down your leasing search by working with companies that specialize in financing for your industry. This way, there’s a higher likelihood that you’ll secure the technology lease that you need.

6. Understand Different Lease Options

It’s essential that you know the difference between a fair market value lease and a dollar buy out option. A fair market value lease typically offers low payments, flexibility in several tax advantages. However, with a dollar buy out option, you can own the equipment when the lease terminates.

The dollar buy out comes with higher monthly payments, however, you’ll have the advantage of depreciation and other tax incentives.

7. Combine Technology Equipment Leases

Whenever possible, arrange for technology and equipment financing in bundles. By leasing multiple assets, you can simplify payments and save on expenses.

If you’re thinking about leasing one technology product, evaluate whether your company could benefit from additional equipment. You’ll boost the performance of your business and save on monthly lease payments. Bundling leases is an excellent way to secure better terms for technology equipment.

 

8. Prepare All Essential Documents

Before you meet with a lender, organize crucial financial information. Present the lender with information such as your cash flow and balance sheet. A financier may also ask you for your most recent profit and loss statement. They may also want to review your bank account information, company assets and investments.

This information is a major determining factor as to whether a financier will issue your lease. By preparing your financial information ahead of time, you’ll instill confidence in the lender. The dollar buy out comes with higher monthly payments, however, you’ll have the advantage of depreciation and other tax incentives.

Leasing Technology Equipment Can Open Doors to Opportunities  

Updating your technology equipment is essential to prosper in today’s competitive marketplace. Leasing can allow you to capture new business. In some cases, it can help you to survive. In the right situation, technology equipment rental is a viable alternative to a substantial, upfront investment in equipment. If you don’t want to outlay a large sum of money, leasing is one way to acquire needed technology and reserve cash for other important business.

For instance, if your business is rapidly expanding, leasing may make sense. Alternatively, you may need new technology to prevent a competitor from capturing a share of your market. These and other situations are ideal cases for looking into leasing options. An experienced technology lease provider can help you make a decision that’s right for your business. AvTech Capital offers a wide range of options to help you stay ahead of the competition in an intense marketplace.

Contact us today to speak with a knowledgeable representative that will craft a customized lease for your unique needs.

Equipment Leasing Options to Help Grow and Scale Your Operations

Top Business Equipment Leasing Trends That Will Shape 2019 As a leader in the capital equipment leasing vertical, AvTech Capital recognizes that staying ahead of the latest technology curve can directly impact both a company's brand identity and its bottom line. We...

Multiple Crop-Dusting Equipment Financing Transactions

Crop Equipment Financing: AvTech Capital is pleased to announce multiple leasing transactions, totaling $1,415,000 financed for a farm in Oklahoma. The farm acquired financing for three pieces of crop-dusting equipment used for improving access to service areas for...

Top Business Equipment Leasing Trends That Will Shape 2019

Top Business Equipment Leasing Trends That Will Shape 2019 Equipment acquisition continually drives the supply chains in the US industrial and manufacturing sector. Business equipment leasing finance offers the capital needed for US businesses that want to invest in...

Benefits of Customized Leasing Solutions

Customized Leasing Solutions to Suit Your Capital Equipment NeedsBusiness owners running organizations of every size and in every industry recognize that investing in their operations is essential to steal market share and boost bottom line profits. For many...

$400,000 Auto Sales Industry Leasing Transaction

Auto Sales Industry Leasing: AvTech Capital is pleased to announce a $400,000 leasing transaction for an auto sales company. This lease was for purchasing a fleet of vehicles for the employees use. This is the first transaction that AvTech Capital has financed with...

$2,726,242 Optical Component Manufacturing Equipment Lease

Optical Component Manufacturing Equipment Lease: AvTech Capital is pleased to announce a $2,726,242 leasing transaction for an optical component manufacturing equipment company. This lease was used to pay off existing equipment leases the company had acquired with a...

$2,571,875 Skin Cancer Treatment Center Financing

Cancer Treatment Center Financing: AvTech Capital is pleased to announce a $2,571,875 healthcare treatment center leasing transaction. This lease was used for funding equipment for skin cancer treatment to be used in 7 new treatment centers throughout Texas, Illinois,...

AvTech Capital Offers Full Suite Of Capital Asset Leasing Options

At AvTech Capital, our mission is simple: we partner with business owners across every vertical to develop customized leasing solutions to support their capital asset needs. Our experienced team of financing experts recognizes that every company has its own unique set...

7th Lease Schedule of $1.6 Million Funded for Manufacturing Equipment

Automation Manufacturing Leasing: AvTech Capital is pleased to announce a $1,600,000 leasing transaction for a Texas manufacturing company. This lease was for manufacturing equipment used to build automation equipment production capacity. AvTech Capital has financed 7...

$1,118,300 Lease for Card Solutions Company

Card Solutions Leasing: AvTech Capital is pleased to announce a $1,118,300 leasing transaction for a card solutions manufacturing company. This lease was for a reimbursement of expenses incurred by the business in buying additional expansion equipment which will...