National Funding Card National Funding Card

Have Your National Funding Card? Get Started.

10 23 2015

Equipment Leasing and Financing Tips

10 23 2015

4 Tips For Getting The Most Out Of Your Equipment Leasing Needs

As the owner of a small business, you know how hard working capital can be to come by. However, you will need to equip your company with the right tools to not only get your business off the ground but to maintain a competitive edge in the marketplace. Often, a small company will not have access to the necessary working capital to make these big purchases. This can put you in a Catch-22: you need to have the equipment to make money, but you can’t buy the equipment until you’ve made enough money. What’s a small-business owner to do?

Leasing the equipment provides one of the best options for a small-business owner to acquire the necessary machinery without breaking the bank. While leasing equipment does not automatically refresh the coffers, it alleviates the company’s burn rate. This means the business stays open longer, which increases the potential for making a profit.

There are many benefits for a company to finance or lease equipment instead of buying it. For businesses that rely on bleeding-edge technology, such as computers or communication equipment, having access to the most current technological iteration ensures your business stays competitive and ahead of the curve.

Here are four tips for getting the most value out of your equipment leasing needs:

  1. Audit your current equipment
    Go through all the equipment you currently have and make note of which is out of date and needs to be replaced. Be sure to take any anticipated growth into account when auditing your equipment; if you plan to expand any time soon, you’ll need to be sure you have the necessary equipment to do so.
  1. Prepare your financial information
    Review your business plan, any credit lines and other financial information to ensure you have the available funds and means to cover the leasing costs. If possible, contact your financial adviser to get another opinion on the matter.
  1. Understand the terms
  • The lease term is the length of time you are required to pay for the equipment. The length of the lease term determines the monthly payment options, with the longer the lease the lower the monthly payments.
  • An upfront payment is the amount of money you initially put down to cover the lease. Generally the higher the upfront payment, the lower the monthly payments.
  • Return rights are the conditions under which you are allowed to return the equipment before the lease term ends if problems arise.
  • Early termination gives you the right to terminate the lease early. This is a tough amendment to add to a lease agreement, but if you can, consider getting a rider attached that gives you the option to negotiate for early termination.
  • Option to purchase includes the right to buy the equipment. Not all lessors provide this choice, but some provide the option to purchase the equipment at the end of the lease term.
  1. Sync up the warranty
    Check out the equipment warranty to ensure that not only is the equipment covered when you lease it, but that it is covered for the entire duration of the lease. If the warranty expires halfway through your lease term, consider negotiating with the vendor to get a different piece of equipment that’s covered. The last thing you want is to have the equipment break or malfunction and not have the warranty cover it, which means you’ll have to continue making lease payments on a non-operational piece of equipment.


  • working capital small business loan

    What Is Working Capital: A Guide to Small Business Funding

    As the saying goes, you have to spend money to make money. When starting or scaling a business, you'll need to invest in certain assets, like inventory, space or employees, before you start making a profit. But, before you begin putting money toward equipment, supplies or other needed purchases, it's critical to understand your current financial… […]

  • Press Release

    National Funding Holiday Bowl Kickoff Luncheon

    National Funding Kickoff Luncheon Set for Dec. 27 Featuring Teams In 2017 San Diego County Credit Union Holiday Bowl SAN DIEGO (November 16, 2017) – College football fans will have the rare opportunity to mingle with players and coaches from the San Diego County Credit Union Holiday Bowl at the National Funding Kickoff Luncheon on… […]

  • Gain Social Media Followers

    7 Ways To Attract More Social Media Followers For Small Businesses

    Social media platforms like Twitter, Facebook, YouTube, and LinkedIn are wonderful ways to connect with your customers, answer their questions and alert them when you have a new product or a sale. However, the benefits of social media can only truly be realized if you have a following. Creating a social media account is only the… […]

  • National Funding Appears on the Inc. 5000 List Five Times in a Row

    National Funding makes Inc. magazine’s prestigious Inc. 5000 list five consecutive years reporting 185% growth from 2013 – 2016 for the new 2017 list. SAN DIEGO, Calif.--(BUSINESS WIRE)--National Funding, one of the country’s leading financial technology companies for small and medium-sized businesses, ranked as one of the nation’s fastest-growing private companies on two prestigious lists.… […]