Ge Capital Leasing

Tom Williams

Financing options to encourage customers to engage in larger purchases, on average, by providing equipment vendors an advantage over their competitors. To increase your business, you might consider adding an option to lease and your customers, or change your leasing program under way to better serve your customers. When considering your options, keep in mind that all partners are leasing the same and you need to find a partner that is best for and your client. The following tips will help you make the right choice for your business.

Tip # 1: Prepare to Compare

When choosing a leasing company, it is important to understand the unique needs of your business. Leasing may not work well for you if your product offerings do not meet the following criteria:

With products

Relevance

value of the equipment is less than $ 5,000 value

Equipment under $ 5,000 are not attractive for a company to facilitate, as these amounts are usually paid by credit card or account anywhere.

value of equipment is less than $ 100,000

If your products are below $ 100,000, most companies will not request that the financial statements. They generally use a credit program to make the approval.

Greater than $ 100,000 in cost of equipment:

Generally most companies will want to consider leasing the financial statements in order to approve a customer when the equipment cost is more than $ 100,000 .. In general, they would review financial statements 2

the duration of the contract provided based on the life expectancy of assets

A leasing program may not be viable if it requires a contract term that exceeds the lifetime of the equipment. For example, it would not make sense to finance a laptop for 7 years, but it may make sense to finance a large printing press for this long of a term.

As a seller, it is important to pack your job in a specific period of time, because it creates another opportunity to upgrade the client at the end of the lease term.

Tip # 2: Know the players

There are 3 main players in the equipment rental industry: dealers, independent leasing companies and financial institutions. The three alternative funding sources offer excellent opportunities for the financing of rental equipment.

Broker

Brokers are intermediaries who work with multiple sources of funding.

The benefit for your client is a broker will have a wide range of financing options for your customers. They will most likely be the ability to finance your customers because they work with a few sources of funding that have contacts. The disadvantage of working with a broker to rent equipment once the lease is funded with the broker, they are out of the picture in terms of any decision involving the lease in the future.

Independent leasing company

Independent companies get their cash lines of credit and / or investors.

A leasing company will usually bill or collect rents and control of decision making for their clients, as well as subtle changes to the documentation if necessary. In addition, you will also create a more customized to your customers.

Financial Institution

Financial institutions are the big boys in the space of rental equipment such as Wells Fargo, U.S. Bancorp and GE Capital.

These institutions will have specific programs available. However, they are more rigid in most cases on their lending conditions: If you and your customers fall within the parameters, it is an excellent option. The disadvantage is that large institutions can make rapid changes, especially in the current brand.