To maintain a competitive edge, technology companies are obtaining cutting-edge equipment with little or no upfront cash through equipment leasing. They then use the equipment to generate more, profitable business, and use their cash to grow the business. Leasing allows companies to leverage cash flow, while letting the asset pay for itself through operations.
Choosing the right financing resource for your leasing and financing is a crucial step. There are thousands of banks and leasing companies in the industry – and no two companies are the same. Understanding the lessor’s reputation can be more important to the economics of the transaction than the monthly payment.
Top lessors have solid reputations in the industry, proven results, transparent terms and conditions, and they make doing business easy for their clients. The best lessors have earned loyal employees who are dedicated professionals committed to the pursuit of excellence.
So, how do you decide which financing source is the smart choice? Here are three key traits of a trusted finance advisor:
1) Stress-free Service
All financing companies will tell you about their outstanding service model. However, actual experiences are vastly different. It is quite common to be transferred to multiple departments and auto attendants to reach a resolution. Often that involves transferring to an overseas call center.
Progressive financing companies provide one single point of administrative contact to handle all aspects of your relationship with them. These experienced professionals are empowered to work with your selected vendors, audit vendor invoices for accuracy, and manage your invoicing. They have the authority to make decisions and respond quickly to your needs.
2) Favorable Terms
It is critical to understand contract terms and conditions when evaluating finance options. Financing or leasing costs can be boosted by thousands of dollars of fees, significantly impacting the effective rate of the transaction. Some additional or hidden costs include:
Annual renewal fees
Term out fees
Top financing companies have straightforward, simple contracts with no fees – no set-up fees and no non-use fees. In the absence of fees – hidden or otherwise – the only component you need to consider in your analysis is the rental payment.
Whether personal or professional, the most successful relationships are when the other party puts you first. While researching potential lessors, the company vision is a good first step in learning about the priorities of a finance company. What is that vision and how is that company living that vision?
Financing companies should be motivated to enhance the client experience at every level. If a finance company is doing business the same way they did five or ten years ago, they are not providing leading-edge service. Modern technologies truly do save a great deal of time and effort, versus the older, slower ways of doing business. Videoconference meetings, electronic signatures, and asset management tools are just a few ways to simplify the client experience.
A trusted finance advisor can help you determine the best strategy for acquiring the equipment and other resources you need to grow your business. See how we are helping companies like yours take their businesses to the next level.