Axis Capital Group Inc Forum Axis Capital Group Review: Equ..

It is normal for start-up businesses to have a budgeted capital. With no steady flow of income to support the demands of a new business, many new business owners realize the benefits of leasing equipment. However, one should be extra careful with great deal of research and review before signing the contract. 

1. Understand your business credit and organize your finances before contacting a leasing company. If you have a decent credit, you can get a reasonable leasing terms even if you just started your business. The particulars of new businesses depend on the type of new business you are starting and the type of equipment you are leasing. 

2. Leasing companies love giving start-ups a chance but they want to know your business plans. Have a concrete goal complete with a mission and vision of at least 5 years. Your leasing company may doubt you if you have doubts with your business plans as well.

3. Research and review on your leasing company. Once you have a short list of providers make sure to check them out thoroughly. Go to Google and run a search on them. Also run a search on social media sites like Twitter. Work only with established leasing providers like Axis Capital Group. 

4. Once you have made sure that the leasing company is legitimate and not a fraud, make sure that they can accommodate your special needs before filling your application. 

5. Be prepared to explain in advance any negative business results to a lease financing provider. For example, if you had a business loss in the previous years that led you to starting your new business explain why. A man from Jakarta, Indonesia had been interviewed by his leasing company when he once applied for a lease but did not tell that he has experienced loss from before. Turns out that the leasing company did a background check about him. In the end, he was not able to get the lease from that company and from the other companies that are associated to that company. He went abroad to approve a lease instead.

6. Understand the difference between a Fair Market Value Lease and a $1 Purchase Option Lease. According to Michael Lockwood, a great leasing expert, “A Fair Market Value (FMV) Lease is one of the most common leases that businesses select because it offers the lowest monthly payments, provides the greatest flexibility at the end of the lease, and may also provide tax incentives. A FMV lease is often used for acquiring technology equipment. On the other hand, a $1 Purchase Option Lease gives businesses the ability to “purchase” equipment for a $1 at the end of a leasing period. The monthly payments are higher than a FMV lease. In addition, you may also have additional financial benefits including depreciation and interest expense benefits for tax purposes”.

7. Make sure you have a permanent business address since it is vital when you have some installation needed in your business.

8. Know your options since terms with a leasing company are flexible. Talk to your leasing broker about what kind of options you can take advantage of once your business lease is over.

For more info just check this out: Axis Capital Group