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Equipment Leasing Buyer's Guide - Introduction

Equipment Leasing Buyer's Guide - Introduction

Published: 04/18/2011

» Business Equipment
» Business Loans
»» Equipment Leasing

 

Introduction

Equipment leasing has become an increasingly popular option for companies that need new equipment. In fact, according to the Equipment Leasing Association, as many as eight out of ten U.S. businesses choose to lease at least some of their equipment.

 

 

A lease lets you pass the buck – at least for a while. A third party funding source (the lessor) will purchase the equipment you want. As the lessee, you can use the equipment in exchange for regular payments made over a contracted period of time. Just like a bank loan, though, you need to have good credit and prove your ability to repay the lender.

 

 

This BuyerZone Equipment Leasing Buyer’s Guide will help you understand why and how to set up a lease and what to look for when shopping for a lease.

 

 

 

Table of contents

 

 

Why lease?

 

 

Types of leases

 

 

Evaluating leasing providers

 

 

Choosing a lease

 

 

Leasing tips

 

 

 

 

Pricing guidelines

 

 

Actual costs for equipment leasing will vary tremendously depending on your business’ creditworthiness, lease size, and location. Here are some very rough estimates.

 

 

 

Type of Lease

 

Notes

 

Estimated leasing rate

 

Small ticket lease

 

$100,000 or less

 

10% to 19%

 

 

Mid‐to‐large ticket lease

 

$100,000 or more

 

6% to 8%

 

 

Broker fee (if applicable)

 

Amount above the rate provided by funding source

 

3% to 5%