Leasing Companies, What You Need to Know

Leasing companies are becoming more and more popular as small businesses find out how to increase their leverage many times over traditional credit lines. This means literally more bang for your hard earned bucks.

Leasing companies can offer very fast financing options with very flexible and attractive re-payment terms and very small up front costs. Since whatever you are attempting to finance is typically an asset, a lease offers the ability to secure the loan against the actual property. Translation: in most cases, these asset-based loans do not affect your credit score nor do they show up on your credit report. This is great because it keeps your unsecured credit lines strong and available for emergencies, etc.

However, with the growing popularity of leasing as a financing vehicle, one is challenged in finding a credible, trustworthy and reliable source. The explosive growth of the leasing industry has unfortunately brought with it a growing number of unqualified "companies" springing up across the country. The question becomes, how do you protect yourself and ensure your best interests are being represented?

The good news is that there are ways to reduce your risk. Leasing companies, especially professional, established firms, will often be active members in the industry's many professional organizations. These organizations set ethical standards and practices and serve as industry watch-dogs,

Look for leasing companies that are members of NAELB (National Association of Equipment Leasing Brokers), UAEL (United Association of Equipment Leasing), ELA (Equipment Leasing Organization) and other professional industry organizations such as AAHOA.

Leasing companies who have taken the time to enroll, keep current with their dues and more importantly, those who actively participate are typically established organizations with good reputations in their community.

Leasing Companies, Why Not Ask For References?

When you are shopping around for leasing companies, when in doubt and for your own protection, why not ask for referrals from current/existing clients? It’s not foolproof, but taking the time to do a little due diligence can save yourself headaches down the road.

Other things you can do to protect yourself from unscrupulous leasing companies, is to check with the Better Business Bureau.

GCR Capital, Your Partner in Making the Deal

GCR Capital has many years of hard-won practical experience helping small businesses solve their financing problems and getting them the funds they need quickly. If there is anything we can do to help you or even if you would just like to speak to one of our knowledgeable representatives, please feel free to call anytime.

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