If you run a business, you inevitably depend on some equipment. If that equipment fails, or a newer, more efficient model comes out, it’s likely in your best interest to replace your current equipment. That might lead you to ask how you can afford to do that. Well, equipment leasing may be your answer.

Think of it like renting the equipment: you find someone who has what you need, and you agree with them. They give you the equipment, and you pay them in pre-determined installments including interest. It’s a win-win for you – you get the equipment without having a big unexpected expense.

How to Do It

Once you’ve decided to lease rather than buy the new equipment you need, the first step is to find someone who has it. There are a lot of leasing companies and many specialize in certain industries. You can look online or in the phonebook for one who works in your industry. The next step is to confirm that they have the equipment you’re looking for. After you’ve checked that, you’re going to have to start working on the paperwork. Though this process is typically less demanding than a traditional bank loan application, the lessor will still want to see some basic documentation. Make sure you can provide them with your tax returns, some financial statements from the past few months, and of course, a proposal for the lease itself.

If your business is a startup, or you’ve had some financial difficulties in the past, don’t worry. Having a bad credit score does not disqualify you from leasing equipment for your business. Just keep in mind that you might need to do some additional work. Some companies will not lease to startups, and some do have credit minimums, so you may need to reach out to a few different companies before you find one that will work for you. You may also need to provide additional information to explain financial black marks.

Once You’re Approved

After having your proposal approved, you’ll be able to take possession of the equipment and start using it. You’ll make your payments according to the schedule worked out with the lessor and be good to go. Once your lease ends, you do have the option of purchasing the equipment. Alternatively, you could lease the newest model, whichever works best for you. Taking advantage of equipment leasing could be just the step you needed to take your business to the next level.