Start a Leasing Company
Equipment is necessary for a business to operate. Some businesses acquire loans to buy equipment, but some find leasing more advantageous for financial or other reasons. Interested in starting a company leasing equipment like computers, laboratory apparatus, vehicles and agricultural machines?
Our guide discusses some important aspects of this company.
Leasing Company Opportunities
Every business needs some equipment to operate. But for some, especially startup companies, equipment are difficult to procure because of the large funding necessary to purchase them. One option for businesses with limited financing and those just starting up is to lease equipment. You can cater to this need by starting an equipment leasing company or by adding this opportunity if you are already in the business of selling equipment. Aside from startups and small companies, you can also serve institutions with equipment that are constantly being upgraded, like hospitals and laboratories.
Important Aspects of Leasing
- Leasing Terms. You can offer different lease types, such as true lease, fair market value, direct financing, etc. Discover and understand how each work so that you could choose the lease structure you want to offer clients. Commonly, a lease means the return of the equipment after the end of the contract period. The period could be for months, a year or several years or the useful life of the machine. If the contract is for the useful life of the machine, you can also offer clients other opportunities, like upgrading to a new model, or buying the equipment for its fair market value.
- Equipment. As an equipment leasing company you can lease out audiovisual equipment, vehicles, medical equipment, IT equipment, computers or equipment for industries, offices, and agriculture. You can lease out equipment if you are already in the business of selling them. If not, you would have to order them from manufacturers.
- Contract. This will contain the leasing terms, and will be drawn once a potential lessee satisfies the requirements for a lease. Usually, up to a certain amount, the client will only need to submit a prepared application form to apply for a lease. If the lease is for a higher amount, there will be other requirements like personal financial statement and tax returns, and bank and trade references.
- Payments. Payments could be structured depending on the ability of the lessee to pay. If the lessee has seasonal cash flows, the contract may be tailored so that it pays higher on months when its cash flow is good and lower when it’s slow. It may also be semi-annual if the lessee can pay lump sums during half-years.
- Repairs. Repairs may be shouldered by the lessor alone or shared between lessor and lessee. Terms regarding repairs should be specified in the contract.
14 Comments
- I have one question. How is the equipment that we would lease to the end user get paid for? If we are not in the business of selling the equipment, how do we pay for the equipment without borrowing the money and then basically giving all the lease income to pay the payments to the bank? Thank you very much. David Thornburg
- I'm interested in finding out how to start an auto leasing company Exp: Laurel, MD, USA
- I want to start one leasing company in Delaware (LLC) to lease goods to brazilian lessees such as hospital equipments, and wish to be informed: if besides the Delaware resolutions I should get previous grant from US government entity (which one?), if there is a minimum capital requirements or deposits in Federal agencies for the amount of the equipment leased? thank you
- Would like to start leasing equipment that i currently sell now and I use a third party to lease it. I would like to do in house leasing but would need to learn the leasing business. Is there somewhere in ontario, canada that you know where they have a course? thanks
- I own a manufacturing company in Texas with equipment/etc. I want to start/form a leasing company and transfer equipment ownership to that leasing company. Then I will have the manufacturing company make monthly payments to that leasing company. How can I transfer ownership of our equipment to a different company?
- would also like to start a leasing company in my country Nigeria. But i do not know much about the rudiments that its entails. I have a friend that knows about it which i know definitely will help out in the running of the business. But that not withstanding, still need professional advice. Thanks
- I want to start my own leasing business company as a third party. getting quotes from clients from different companies in FL. I need some guidance on contracts for retailers and lenders as well for clients. any Ideas? really need professional advise.
- I want to start a leasing company in my country jordan, i need information about leasing models in excel to prepare expected financial statements for five years. Can you guide me how can i find leasing models? Thanks in advance
- i'm thinking of stating a leasing company in my country Nigeria. but i little knowledge about these, can you assist? Thank you.
- Menlo Park ca. I would like to know how do I find companies who will buy my debt once I complete lease deals with my clients?
- our company does various businesses for doctors. one of which involves getting equipment for newly formed medical offices. We use third party for leasing. I want to find out the requirements to start our own leasing company in Brooklyn NY. Thanks
- I own an AZ based trucking company and would like to form a leasing company to transfer ownership of equipment from company to leasing company. Can you direct me to a source for this information. Thanks
- hey am very much interested in this leasing business but i dont know what is required to make it a reality. May you please take me through the processes involved and all the essential factors to consider. I would appreciate if you send me feedback in my email address.
- I just started a leasing company here in North Texas. I would like to work with others that want to offer leasing as an option. I can only lease to companies not individuals. bruce@xlimaging.us
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