On many websites including ours, you will see the opportunity to get a “quick” quote. I apologize on behalf of all leasing companies because the chance of you getting the number you’re quoted are about 37%. Here’s why. A good equipment leasing agent will pepper you with questions just like a good defense lawyer. And then, also like a good defense lawyer, she will prepare your case to present to a credit manager who will then say yah or nay and slam down the gavel. Once approved, your request is applied to a pricing matrix that spits out a number totally unique to your company.
To give you an accurate lease payment, here are the three things we need to know.
First, tell us about your business.
What do you do? How long have you been doing this? Will this equipment generate revenue like a backhoe? Or is it more a necessity like a photocopier? Points here will be awarded for time in business. Even if you’re running a brothel, if you’ve had it going for years, you’ll get a better rate than a start-up oil company.
Secondly, what equipment are you looking to lease?
Credit managers will always smile upon conventional equipment they can easily re-deploy back into the market in the unlikely event you close your doors. Telephone systems, copiers, construction and shop equipment are heavy favourites. Even the brothel needing a photocopier will get a better rate than your local Chamber of Commerce wanting to lease an expensive painting from a local art dealer.
Finally, lease payments are influenced by how your company has handle credit in the past.
Leasing companies pull Equifax and Trans Union reports to see how companies repay their debts. If you’ve never borrowed before and your company has no payment history, the leasing company has nothing to go on and your rate will be higher. Co-signing on behalf of your business may help but that’s another story for another day.
In conclusion, a “quick quote” will give you a number, but be prepared for change.
And that change may or may not be in your favour. Your best bet is to ask yourself what figure your business can afford each month taking into account current revenue and expenses and then CALL the leasing company to discuss the points mentioned above. Our number is 1-877-955-1930 and I would be honored to learn more about who you are, what you do and how we can move you forward with the equipment you need.