Myths About Leasing:
Myth 1: "I need to have perfect credit to lease."
While good credit will increase the likelihood of approval, leasing is a good alternative for customers with less than perfect credit. Many factors are considered; such as time in business, average business checking balance, and comparable business credit.
Myth 2: " If I lease, I can't own my equipment."
Like banks, title is not transferred until the obligation is paid. By taking title through leasing, rather than putting a lien against the equipment via financing, we can keep from reporting to a lessee's credit bureau.
Myth 3: " Leasing cost more than traditional financing."
In most cases, leasing actually costs less than traditional financing. Typically, up front costs are limited to first and last monthly investments. When the tax advantages of leasing are considered, payments are usually lower than traditional financing. As the New York Times best seller The Millioniare Next Door, and billionaire J. Paul Getty said, " If it appreciated buy it, if it depreciates lease it!" Leasing preserves cash flow and saves businesses.
Myth 4: "I can only lease 'new' equipment."
The majority of equipment that is financed through leasing is "used". There are no age restrictions per se and terms can be tailored to the customers needs.
Myth 5: "Leasing is difficult."
This could not be further from the truth. Qualifying for and completing the lease transaction is, in most cases, easier than traditional bank financing.
Myth 1: "I need to have perfect credit to lease."
While good credit will increase the likelihood of approval, leasing is a good alternative for customers with less than perfect credit. Many factors are considered; such as time in business, average business checking balance, and comparable business credit.
Myth 2: " If I lease, I can't own my equipment."
Like banks, title is not transferred until the obligation is paid. By taking title through leasing, rather than putting a lien against the equipment via financing, we can keep from reporting to a lessee's credit bureau.
Myth 3: " Leasing cost more than traditional financing."
In most cases, leasing actually costs less than traditional financing. Typically, up front costs are limited to first and last monthly investments. When the tax advantages of leasing are considered, payments are usually lower than traditional financing. As the New York Times best seller The Millioniare Next Door, and billionaire J. Paul Getty said, " If it appreciated buy it, if it depreciates lease it!" Leasing preserves cash flow and saves businesses.
Myth 4: "I can only lease 'new' equipment."
The majority of equipment that is financed through leasing is "used". There are no age restrictions per se and terms can be tailored to the customers needs.
Myth 5: "Leasing is difficult."
This could not be further from the truth. Qualifying for and completing the lease transaction is, in most cases, easier than traditional bank financing.